The end of a marriage might leave you and your partner financially worse off than before you tied the knot. A prenuptial agreement or prenup helps prevent such an outcome by detailing how you will divide your assets and obligations should your marriage fail.
Signing a prenup is generally helpful no matter what your financial situation may be, but you might want to consider doing it in the following circumstances:
One partner is wealthier than the other
There is no way to sugarcoat it: some people marry for money. If you are in a better financial position than your partner, having them sign a prenup helps ensure they are not marrying you to take advantage.
But a prenup can benefit the less wealthy partner as well. Should your financial situations reverse after you marry your partner, the prenup will also protect you.
One partner wants to protect an inheritance
If you erroneously convert your inheritance into marital property, you might risk losing it during your divorce. A prenup can help clarify who retains ownership of specific assets, such as properties you inherit from loved ones.
One partner owes more debt
In certain situations, the debt your partner incurred during your marriage may also end up being yours. In your prenup, you can lay down which debts you and your partner are responsible for, helping you keep creditors off your doorstep after divorce.
You and/or your partner have children
If you and your partner have children from previous marriages, signing a prenup can help protect any assets you may be saving for them.
You want to keep your privacy
Prenups are not just for protecting wealth. They can also help prevent your partner from disclosing specific information after divorce. For example, you might stop them from posting details about your marriage on social media or publishing these in a tell-all book.
A prenup can protect you and your partner in several ways, so it generally helps to create one regardless of your financial situation. Consulting with a family law attorney helps ensure that your prenup is watertight, fair, enforceable and effectively fulfills your intended purpose.
