Pop culture, romantic comedies and love songs tell anyone who will listen that relationships are all about love, warm feelings, flowers and sunsets. While there is nothing wrong with falling head-over-heels in love with for your future spouse, you probably want to protect your assets. Unfortunately, prenuptial agreements are often the third rail of romantic relationships.
While it can be difficult to discuss a prenuptial agreement with your love interest, drafting one may be the best way to ensure your financial viability as an individual and as a couple. While there are a few reasons to have a prenuptial agreement, you may be on the fence about creating one of your own. Here are six times these agreements make sense:
1. You intend to quit your job
Following your marriage ceremony, you may want to quit your job to focus on raising children. While some personal considerations go into making that decision, you must protect your financial well-being. A prenuptial agreement may be the best way to do that.
2. You have a business
If you divorce, your spouse may receive some or all of your business. Because you worked hard to get your company off the ground, you probably want to keep it. Further, your shareholders may require you to protect your business ownership. Either way, a prenuptial agreement ensures you keep your business interest.
3. You have significant wealth
You have worked diligently for the wealth you have. If your marriage ends, you probably do not want to become penniless. With a comprehensive prenuptial agreement, you safeguard your wealth.
4. You have no wealth
Not all brides and grooms are independently wealthy. If you have significantly fewer assets than your soon-to-be spouse, you may want to rely on a prenuptial agreement to protect your financial interests after a potential divorce.
5. Your spouse-to-be has considerable debt
While you may be happy to help your partner pay off outstanding debt, you do not want to be legally responsible for the debt after a divorce. A prenuptial agreement can protect you from your partner’s financial liabilities.
6. You want to solidify your estate plan
Finally, you may want to retain some control over what happens to your assets after you die. While drafting an estate plan is the best way to protect your belongings, you can also use your prenuptial agreement to ensure your heirs honor your wishes.
While prenuptial agreements may not seem to be particularly romantic, they are usually a smart way to protect yourself during and after marriage. If any of the above situations apply to you, drafting a prenuptial agreement is probably the right approach.