What is a prenup?
A written agreement between two people who intend to get married which addresses how financial matters will be addressed in the event of a separation or divorce.
What is a postnup?
A written agreement between a married couple which addresses how financial matters will be addressed in the event of a separation or divorce.
When would a prenup be valuable?
A prenup can be valuable in many different situations. If one spouse is set to inherit a family fortune, a prenup can ensure that it remains that persons sole property in the event of a divorce. If a couple moves to a different state throughout the course of their marriage, where the divorce and alimony laws are different, then a prenup can be helpful in deciding how assets will be split so the state doesn’t get to decide. If a couple is older and getting married for a second time, each having adult children, having a prenup can ensure that each spouse’s children will get their assets instead of the spouse getting it upon their death. A prenup can make sure a current, or future entrepreneur, will get to keep the business in the event of a divorce.
A prenup can prove to be valuable to almost any couple at any stage in life.
Does wanting a prenup imply that I don’t love my fiancé?
No, it may seem to be an unromantic document, but a prenup may actually be a great thing for your marriage. Studies show that finances are a leading cause of stress in a relationship. Making sure to openly communicate about your finances before marriage may ensure that your marriage lasts.
Is there any downside to having a prenup?
There are some potential downsides to having a prenup. It may be difficult to project how you would want to handle something years in the future and then be bound to a decision you made when you were younger. There could also be a situation where assets that a spouse may have otherwise been entitled to as a business grew or as something increased in value could be taken away from them depending on how the prenup is worded.
Should a prenup be mediated or should each side have their own lawyers?
Each side could have their own lawyer when drafting a prenup or the couple could choose to have it mediated. This would teach the couple how to work together, be transparent, understand each other and have difficult conversations revolving around finances which would be very helpful going into a marriage.
