At one time, prenuptial agreements were almost exclusively used to protect the wealthy. The spouse with a lower income and/or fewer assets was essentially asked to give up any claim to their partner’s wealth if the marriage ended in divorce.
Today, any prenuptial agreement that is too one-sided likely won’t be upheld in court. Consequently, their purpose has changed from protecting wealth to clarifying expectations should a couple later divorce. Advantages include:
Both spouses get on the same page financially. With a valid prenup, you and your fiancé(e) must be completely honest with each other about your respective income and assets. This clarity can prevent assumptions that may impact the relationship later on.
Protect children from an earlier relationship. In the absence of a prenuptial agreement, your spouse may receive assets that you intended to give your children. Identifying these assets in an agreement can help ensure that they end up with the intended recipients.
Protect a business. If you own a business before getting married, any subsequent increase in value can be subject to division upon divorce. You can specify in your agreement that if you divorce, you keep the business while your spouse receives marital property of comparable value.
Make divorce settlements easier. By defining expectations and clearly designating separate property, prenuptial agreements can help avoid lengthy court proceedings during a divorce.
Attorney Steven L. Fritsch can help you start your marriage on a solid note by drafting a prenuptial agreement that’s fair and gets you both on the same page before you say, “I do.”