A prenuptial agreement gives you a place to outline and clarify obligations and expectations. Marriage requires the meshing of many aspects of your life with someone else’s, most notably finances.
Increasing your long-term protection may minimize the impact of an abrupt end to your relationship if it happens in the future. Knowing when a prenup could benefit you might help you make a more confident decision.
You own a business
Business ownership is one of the most common reasons to seek a prenuptial agreement prior to marriage. Given the critical nature of business debts and assets, you will want a place where you can legally claim ownership of your stake within the company. According to U.S. News, there are many moving parts to creating a prenup. This includes the following:
- Making a complete list of assets and liabilities
- Determining ownership
- Negotiating a reasonable agreement
- Drafting documents
After completing the aforementioned steps, you can finalize your document and obtain the necessary signatures to make your agreement legally binding.
You have been through a divorce
Another common reason for a prenup is if you have been through a divorce. Separating from a former spouse could mean you have children from that relationship to provide for, alimony to pay and concerns about your retirement assets ending up in the wrong hands. In your prenuptial agreement, you can clarify who gets what. Planning a remarriage could mean you will split aspects of your income between two families. Clearly highlighting asset distribution can protect you and those you love.
There are ways to discuss a prenuptial without coming across as pessimistic or self-centered. Finding an appropriate time to bring up your concerns could improve the receptiveness of your significant other.