We often associate prenuptial agreements with the short-lived marriages of Hollywood stars, but nowadays many “regular” couples are choosing to sign prenuptial agreements. In 2013, 1,600 members of the American Academy of Matrimonial Lawyers were surveyed and 63 percent reported an increase in prenuptial agreements over the course of three years.
The Pros of a Prenuptial Agreement
Though, a prenup is not the most romantic thing in the world, this document can protect both parties in the event of a divorce, or the death of a spouse. Prenuptial agreements can prevent nasty, expensive court battles and protect each spouse’s premarital assets from being claimed by the other spouse. It was also protects the income and assets that are acquired during the course of the marriage. Without prenuptial agreements, a party may have to pay child support or alimony, but a prenuptial agreement can establish an agreed amount or eliminate it completely from becoming a cause for litigation in the future.
A prenuptial agreement can, of course, be difficult emotionally. However, it is nowhere near as emotionally corrosive as the pain that can be caused by an ugly divorce, especially when there are children involved. Enduring this emotional discomfort early on can prevent years of devastating later on. Prenuptial agreements have been suggested to strengthen a marriage, since it allows each spouse to become aware of where they stand financially. This benefits an individual by providing them with some protection against the unknown of the future. The rights of children from the marriage or relationship can be protected through a prenuptial agreement, and you can even decide how to handle individual financial debts like student loans or credit card bills.
The Cons of a Prenuptial Agreement
In a first marriage, a prenuptial can create permanent friction between spouses and families. Some prenuptial agreements are unnecessary, too broad and mean-spirited, often welcoming marital selfishness and creating a destructive atmosphere. Prenuptial agreements often occur on an uneven playing field, where one spouse has significantly more money or assets than the other. This can lead one spouse to feel selfish and unkind and the other to feel like the victim of an unfair agreement.
The initial prenuptial agreements can be harsh, most state the each party’s past and future assets and income belong to the party alone, except for intentional joint property. This agreement has no inheritance requirement if the couple is still married when one partner dies and there is also often an alimony waiver. Furthermore, a prenuptial agreement can increase the belief that you and your spouse aren’t fully committed to making the marriage work even when things get difficult.
Do I Need a Prenuptial Agreement?
Approximately 75 percent of American marriages end in divorce, so a prenuptial agreement is a realistic decision to make rather than a romantic one. If you want to protect your assets and finances and avoid heartbreak, grief and stress, a prenuptial agreement is an extremely wise decision to make. Keep in mind that both parties must voluntarily enter into the agreement in order for it to be valid and that no prenuptial agreement can violate criminal law or public policy.