What do you think when you hear the word “prenup”? A prenuptial agreement may bring to mind thoughts of the rich and famous, those who have substantial assets to protect. However, prenups are not just for the wealthy and they are becoming increasingly popular with millennials who are considering marriage.
But why should you get a prenuptial agreement before marriage? Let’s look at some excellent reasons to consider it.
Create an easier split of assets
While no one wants to think about the possibility of divorcing, should this happen, there are some assets that might be more difficult to divide 50/50. If, for example, you purchased your home before marriage and want to ensure that it remains in your name, then a prenup can keep it safe for you in case of divorce.
Protect inherited wealth
Do you stand to inherit wealth, property, or other assets from a relative that you wish to keep as yours alone? Then a prenuptial agreement can help you to do this without any difficulties along the road.
Think in terms of resolution
If your marriage does break down, this can be a heated time for all involved. A prenup gives you the chance to think with cool heads about how you would divide your assets if your marriage should dissolve, making a divorce easier down the line. This can be especially valuable if you have already suffered from unequal treatment in a previous relationship.
Protect yourself from debt
A prenup is not just about protecting your assets. It can also include a “debt clause” which can protect you from being liable for a partner’s debt – either current debt or debt that they may incur in the future.
Consider your children
Do you have children from a past relationship? It can be important to ensure that their inheritance is protected, and a prenup can include terms pertaining to this. You should also write a will to make sure this is fully enshrined in law.
Look after your business
More people than ever are becoming sole traders or setting up a business of their own. The financial success that you incur from your business should be yours alone – and if this is important to you, then a prenuptial agreement can protect it in case of a divorce. There can also again be a clause protecting a partner from debt in the case of a business doing poorly.
With all of this in mind, it may be time to speak to a family lawyer about the possibility of signing a prenup with your potential spouse. While it might be a practical rather than romantic step, it is a good way to begin your new life together.