Getting a prenuptial agreement may seem like something best suited to celebrities or those with inheritances or vast fortunes at stake. In fact, every couple can benefit from going through the process of creating a prenup, or antenuptial agreement, as it compels you to honestly disclose assets and discuss financial issues which could create problems later in life.
Of course, the main reason for a prenuptial agreement is in the event you and your spouse do end up in divorce court. A 2016 report in the Huffington Post highlights four important reasons why couples should protect themselves by getting a prenup:
- This is your second or third marriage: It is common for those entering second and subsequent marriages to have children from prior relationships. You can use a prenup to allocate certain assets specifically towards your children, protecting their inheritance.
- You own a business: If you have your own business or a partnership with another, it is important to realize that your future spouse’s contributions during your marriage to that business could result in an ownership interest.
- You have prior debts: Whether this is your first marriage or you are previously divorced, you may have outstanding debts that need to be dealt with. Your prenup can specify these debts as belonging to an individual party, while also designating how they will be paid.
- Protection of inheritance: If you do anticipate inheriting money, property, or other assets from a loved one at some point in the future, your prenup can help ensure it remains in your sole possession.