Prenuptial agreements (prenups) raise debates. Some people believe they predict divorce before a marriage starts, while others believe they offer protection. Undoubtedly, when you are getting into marriage, you may have assets and wealth. A prenuptial agreement can encourage fair property division in the event of a divorce.
According to Harris Poll, in 2022, 15% of Americans who are married and engaged reported that they have signed a prenup. This is a significant increase from 3% in 2010.
Thus, many people, including young couples, are considering this agreement. Here are four vital aspects to include in a prenuptial agreement when you create one.
You should include all your premarital individual assets in your prenup. This includes personal property, savings, investments and stocks, bonds and mutual funds.
If you and your fiancé already have joint assets, you should also include them in your prenup but in a different category.
If you have premarital debts, include them in your prenup. Examples are student loans, mortgages and auto loans, among others. This protects your spouse from paying your debts should you go through a divorce, and vice versa.
Children from previous relationships
The blending of families is a positive move most people are taking to create a positive home environment for children. However, despite raising your current and future kids together, you should have a separate clause for those from previous relationships. Include their details and property rights.
A prenuptial agreement can include the specific financial duties that each party is expected to meet during the marriage. For example, how much each will contribute towards a goal. You may also include marital responsibilities in this section.