Marriage can be a wonderful partnership for many couples. However, it can also be problematic and physically/emotionally overwhelming for others. In these cases, a divorce may be necessary. During a divorce, it is important to remember you are ending not only a physical relationship but also a financial one. Dividing property and assets is not easy for most couples, but a prenuptial agreement can be beneficial for some. Unfortunately, many people believe a few common misconceptions regarding prenup agreements. With this guide and your attorney, you will learn the truth behind these misconceptions.
Prenups Are Only for the Rich
One of the most common misconceptions people believe is that prenuptial agreements are only necessary for couples who are rich. Today, more and more people, even millennial-aged couples, are choosing to sign prenuptial agreements before tying the knot. Either these younger couples have accumulated property and assets on their own or they have debt that they do not want their spouse to deal with if the marriage comes to an end.
Another reason why individuals who are not even considered rich are signing prenuptial agreements is that they grew up with parents who divorced. They may have seen the struggles of their parents during and after the marriage, teaching them the mistakes they want to avoid if and when they do get married and have to divorce.
Prenuptial agreements are not just used to help divide property and protect assets that "rich" individuals accumulated before marriage — they are also used to make the division of property and assets easier for divorcing couples who do not even have a high net worth or a great deal of money.
Signing a Prenup Means You Are Expecting to Divorce
Another misconception people believe is that signing or asking your future spouse to sign a prenuptial agreement is basically admitting you expect the marriage to fail. In reality, a prenuptial agreement before marriage can help improve the actual relationship once you are married.
During the initial stages of designing and signing a prenup, you and your future spouse will be able to discuss financial and business issues that may affect your marriage in the future. The discussions may include how much money or property each of you has which will be brought into the marital relationship. Also, the prenup will help you and your future spouse decide who and how debts and other expenses will be paid once you are married.
Considering that money is the number-one reason why many married couples argue, having discussions about money and finances before entering a marital relationship can be beneficial.
Prenups Only Protect the "Wealthier" Spouse
Finally, you may think a prenuptial agreement is only used to protect the "wealthier" spouse or the spouse who has a business, money, or even stable employment. An example would be if someone who owned their own business or had a good job with decent income was marrying a part-time worker or even a stay-at-home parent. In this case, the prenuptial agreement would be used to protect the person with the steady income/job.
Fortunately, this is just another misconception people believe.
A prenuptial agreement can be designed in a variety of ways. It can help protect both individuals in the marriage including the business owner and the stay-at-home parent. If you are considering a prenuptial agreement, it is best to consult an attorney who can help design one suited to both individual's needs.
Whether you are planning to marry or already have a prenuptial agreement in place, working with an attorney is key to understanding prenups. This guide and your attorney will help you answer any questions you may have regarding prenuptial agreements before and after your marriage.
Contact a lawyer from a firm like Stoddard Law Firm for more information on prenups.