For a long time many people considered prenups taboo. Some people thought it was improper to discuss them and sometimes it was considered an insult if your spouse requested you signed one. However, like many other industries, younger couples are changing the conversation surrounding prenups.
Statistics show that many more millennials are choosing to sign prenups before marriage, and for good reason. Could a prenup actually be a good idea for you, too?
Before, prenups were generally thought of as a precaution, so your spouse would not run off with your money. Now, however, they are considered more of a good business decision. They can lay a foundation for a healthier relationship. Though it might not sound romantic, a marriage is also sort of a business relationship. When you get married you take on your spouse’s financial burdens and successes.
Having a prenup can clarify your financial agreements and make everything more transparent. Prenups can help couples who own businesses or property, have significant debt and/or have stock options or substantial retirement accounts.
A prenup can help you preserve your independence and protect your hard work. Contrary to previous belief, a prenup does not favor or defend one side, it is an agreement that benefits both people. A prenup can also protect your current or future children. These agreements lessen the emotional and financial toll of a potential divorce, should it come to that.
Creating a prenup
After you decide that a prenup is a good idea, you will want to discuss it with your future spouse as soon as possible. This way, you can have multiple conversations about it and leave as much time as possible for decision making and negotiations.
When you go about creating a prenup, you will need to evaluate all your finances. Decide what you want to include. You can account for separate property, alimony and division of future assets in a prenup. For example, you can ensure a portion of your income remains separate during your marriage, if you wish to do so. You can even decide who will get your pets in the event of a divorce.
When creating a prenup you each need to find an experienced attorney to represent you. While this whole process may seem emotionally-charged and confusing, in many cases it is not, and could benefit both you and your future spouse in the long run.