You’ve met the love of your life and decided to tie the knot. Congratulations! Understandably, you are looking forward to your wedding day with lots of excitement. Alongside the wedding plans, you are also certainly planning your life together. Where will you live? How many kids will you have? And so on and so forth.
Unfortunately, not all marriages are meant to last a lifetime. And with divorce cases on the rise, have you thought about what would happen should your marriage fail to work?
A prenuptial agreement can clarify things
A prenuptial agreement, simply known as a prenup, is a contract that soon-to-marry couples sign to outline the financial terms of the marriage. A prenuptial agreement is meant to separate personal property from what you acquire while in the marriage. During the prenup, each party is expected to fully disclose what they own (and owe). But how do you know a prenup is right for you?
A prenuptial agreement is a great idea for every couple. Specifically, it is important if you fall into any of the following categories:
- You or your spouse is coming into the marriage with a substantial amount of assets or debts
- You or your spouse has children from a previous relationship
- You or your spouse owns a business
- You or your spouse is expecting a huge inheritance
- You are concerned about your spouse’s spending and borrowing habits
Besides these reasons, a prenup can also go a long way in clarifying how you and your spouse will handle finances in marriage. For instance, you can use this document to clarify whether you will have joint or separate bank accounts as well as how you will handle jointly owned assets in the event of a divorce.
A prenuptial agreement protects each party’s interests. While drafting a prenuptial agreement may not sound romantic, having a valid prenup can give you peace of mind and strengthen your relationship.