You may or may not have any reason to get a prenuptial agreement. Whilst nobody plans for divorce when they’re getting married, the sad fact of the matter is that 1 in 3 marriages end in separation.[1]
While you might understand intellectually that divorce can and may happen to you, your heart holds on to the romantic notion of love – an idealistic view that is shattered by the thought of bringing up the topic of a prenup agreement.
What’s the one of the major causes of marital strife? Arguments and miscommunication about money! [2] This is why many couples refuse to talk about securing their finances before they tie the knot.
But ignoring important money matters may come back to haunt you once you take the plunge and legally bind yourself in marriage to another.
Here are 6 Reasons Why You Get a Prenuptial Agreement:
- You are much wealthier than your partner. A prenuptial agreement ensures that your partner is marrying you for who you are, and not for your money.
- You are much poorer than your partner. A prenuptial agreement can also be used to ensure that a partner who is financially poorer is protected.
- You are remarrying. When you remarry, your financial concerns can be very different than in your first marriage. Especially if you have children from a previous relationship. A prenuptial agreement can safeguard your assets especially if you need to include them in your Will for your benefactors.
- You have your own business. Without a prenuptial agreement, if your marriage ends, your spouse could end up owning a share of your business.
- Your partner has a large debt. If you are marrying someone with a significant debt, without a prenuptial agreement you may find yourself responsible for a debt you didn’t bring to the relationship.
- You have a stake in a large inheritance. If you have family wealth or a trust fund, you can protect this inheritance with a prenuptial agreement and further provide for it in your Will.
The good news is, even if you’ve already been married without a prenuptial agreement in place you can still protect yourself with a postnuptial agreement throughout any period of your marriage. to define the financial rights and obligations of each partner.
[1] http://mccrindle.com.au/SocialAnalysis/2012/Top-5-Demographic-Myths-Investigated_McCrindle-Research_02022012.pdf
[2] http://divorcesupport.about.com/od/isdivorcethesolution/qt/marital_discord.htm