As you enter a new marriage with the one you love you may not want to think about the possibility of divorce, which is why many people do not even consider the idea of signing a prenuptial agreement (prenup). However, prenups are growing in popularity amongst couples due to the practical purpose they serve, and the ways in which they can protect both parties in the event of a divorce. While we have previously discussed a few of the reasons to consider signing a prenuptial agreement before getting married, if you are still uncertain whether this is right for you here is an overview of a few additional benefits a prenup can provide.
Helps You to Prepare for a Potential Divorce
While it is unpleasant to think that your marriage may not go as planned, the fact is that almost 50% of marriages end in divorce. This makes signing a prenuptial agreement of great benefit as it can prepare you for the possibility of divorce now, and make sure that you and your partner are on the same page regarding what each party is owed in the event of divorce. Taking the time to make these decisions now can save you a great deal of time and stress later by helping to shorten the lengthy divorce process. Additionally, a prenup will prevent a potential divorce from getting ugly as you will already have agreed to the terms for dissolving the marriage.
Protects Stay-at-Home Parents
A prenuptial agreement is a particularly good idea if one of you plans to quit your job in order to stay at home and raise the children. Should you get divorced, the parent that has not been working may find it difficult to re-enter the workforce, as it can take time to find a position after an extended period of unemployment. A prenuptial agreement will work to protect the stay-at-home parent by ensuring that they have enough funds to live on during the transitional period after divorce. The prenuptial agreement can also help you to determine how any current or future children will be cared for after divorce, and what the financial obligations of each parent will be.
Keeps Debt Where it Belongs
You should also consider a prenup if one, or both, of you have a great deal of debt entering the marriage. Couples today are more likely than ever before to enter marriage with debt from student loans, car loans, and credit cards. In fact, the average college graduate leaves school with $30,000 in student loan debt alone. Thusly, a prenuptial agreement can be a wise decision for many couples as it will help to determine what debt belongs to who entering the marriage, ensuring that neither party gets saddled with the other’s debt after a divorce.
Helps You to Maintain Your Assets
It is particularly important to choose a prenup if either party is entering the marriage with large assets such as inheritance money, a trust fund, or property. In some states, all assets become community property upon marriage, and these assets would have to be split 50/50 in the event of a divorce. A prenup can help you to protect these assets by allowing you to outline now what assets belong to each party, and it will allow you to determine how these assets should be divided in the event of a divorce.
No one wants to consider the possibility of a divorce right before they get married. However, taking the time now to discuss the terms of a potential divorce with your partner before you get married can help to save time, and reduce stress, in the event of a divorce. Contact us to learn more about the reasons why you should consider a prenuptial agreement before you get married.