When couples get married, they don’t plan on splitting up in the future. However, the divorce rate is still high, with almost 50 percent of all marriages ending in divorce in the U.S.
The possibility of divorce should be a warning sign to engaged couples. Couples getting married should consider having a prenuptial agreement. Drafting a prenup allows both spouses to protect their finances in the event of divorce.
People who have significant assets often draft a prenuptial agreement before getting married to protect their finances in case they end up separating. However, not just wealthier individuals benefit from drafting a prenuptial agreement. Many couples that create prenups say that they would rather figure out how their assets would be divided now than to pay more legal fees in the event of getting a divorce later.
Experts say that couples should consider their net worth and how they manage money when drafting a prenuptial agreement. Below is a list of what couples should consider when forming a prenuptial agreement:
- Each person should have their own lawyer during negotiations.
- Take time to consider and negotiate the prenup before signing.
- Make sure to consider specific state laws on prenuptial agreements.
- Prenups can insure that assets go to who you want in the event of your death.
A majority of prenuptial agreements are enforced by family law judges. It is important for soon-to-be spouses to consider their current situation as well as their life in the next 10 years to make sure if they do divorce, they will have some financial stability already negotiated and decided upon.
Couples considering a prenuptial agreement should consult a divorce attorney to discuss the process and what other factors they should be considering.
Source: Fox Business, “Why You Should Consider a Prenup,” Andrea Murad, Feb. 4, 2013