A common belief is that prenuptial agreements are for the very wealthy. In fact, prenuptial agreements can benefit and protect anyone who has preferred heirs or assets, even modest possessions such as family heirlooms. Sadly, some marriages end up broken by divorce, and if a divorce becomes antagonistic, a prenuptial agreement can serve to protect financial and estate planning intentions. Prenuptial agreements should be used when:
You are re-marrying. In a re-marriage the financial and legal issues are often different than in a first marriage. There may be children, support obligations, home ownership and pension plans, and other areas of complication. With a prenuptial agreement, it is possible to ensure that neither the first family, nor subsequent families, are disinherited upon your death. Without a prenuptial agreement, it is easier for a current or previous spouse to overturn a last will or estate plan.
You plan to leave the workplace and become a stay-home parent. Leaving gainful employment for homemaking and child raising will decrease your income and wealth. It may decrease future employment and earnings opportunities. The prenup can specify that the financial burden of raising children will be shared equally by the spouses. It can guarantee financial recompense to the partner who gives up a work life outside the home.
Your wealth is much greater than that of your fiancé. Through a prenup, the fiance essentially signifies that she or he is marrying you for the person you are, not for your money.
You are much poorer than your fiancé. As well as protecting a spouse who is better off, the prenup can provide a financial safety net for a partner who is economically disadvantaged or vulnerable.
You make much more money in your job than does your fiancé. In many states, a prenup can place limits on the amount and duration of alimony that could be required in future.
Your partner has large debts. The prenup can prohibit the transfer to you of responsibility for such debts in the event that the marriage should come to an end.
You own part or all of a business. If the marriage of a business owner ends, the ex-spouse could claim part ownership of your business, or become the owner or a partner in the business, which may not be what you, or your partners, wish nor intend to happen. This is another financial area which a prenuptial agreement can safeguard.
If any these issues are a consideration in your life and upcoming wedding, it behooves you to consult a family law attorney for expert guidance on a prenuptial agreement to shield your assets and chosen heirs. Or if you have these considerations but are already married, talk with a family law attorney to learn how a postnuptial agreement also can shelter your interests.
Posted by Mary Wreford; Approved by Lea Ann Sterling, Esq., October 2, 2008
The information presented in this article is for general information only and should not be construed to be legal advice.