5 reasons to consider a prenuptial agreement

Marriage is meant to be a lifelong commitment. However, divorces happen because no one can really predict their partner’s actions or their own in the coming months, years, and decades after their wedding. This is precisely why more people are considering the merits of prenuptial agreements.

Consider a prenuptial agreement if there is financial debt

Most couples don’t want to talk about school loans, credit card debt, and a possible mortgage, as the subject is inherently depressing. However, there is an undeniable imbalance between a future spouse who has a significant debt load and one who has little or no debt. A person who has no debt or a small amount of debt should have a prenuptial agreement detailing each party’s financial obligations and how that debt will be divided in the event of divorce.

Consider a prenuptial agreement when one person has more assets

Most couples do not have exactly the same amount of assets. It just doesn’t make sense for a person with no assets to come out of a divorce with half or more of the assets of their previous partner. The assets of each party must be clearly identified and quantified in today’s dollars in a prenuptial agreement that states exactly how those assets will be distributed in the event the marriage ends in divorce.

Consider a prenuptial agreement if a company is involved

Business owners of all kinds should have a detailed prenuptial agreement before they get married. The alternative is to go ahead without legal protection for the business, ultimately putting it at risk if the husband or wife decides to divorce. It would be a grave injustice if an undeserving spouse received a share of the business or the proceeds from that business if the marriage ended in divorce. This is precisely why all business owners should have a full prenuptial agreement before tying the metaphorical knot.

Consider a prenuptial agreement if there is an imbalance in income

Although married couples share almost everything, fewer couples share their income with each other as time goes on. After all, we live in a meritocracy where people are rewarded for their hard work, skill, and intellect with financial compensation. A breadwinner who earns significantly more than their partner should have a detailed agreement in place to safeguard that earned income and minimize alimony payments in the event of a divorce.

Consider a prenuptial agreement if children can enter the picture

Raising one or more children requires spending time outside of the workforce or paying a caregiver to watch the little ones during the day while Mom and Dad are at work. A couple planning to raise one or more children needs a prenuptial agreement. This legal tool details the amount of child support to be paid and can even provide such payments for a stay-at-home parent until the child turns 18. If such an agreement did not exist, the parent who spends years out of the workforce could potentially come out of a divorce empty-handed with a stunted career and diminished earning capacity due to the employment gap.