What should you consider before creating a prenuptial agreement?

Prenuptial agreements are becoming increasingly more popular with the younger generations in the United States, including people in New York. As the younger generation works hard to establish themselves in the industry, they also do not want their investment to slip out of their hands in the event of a divorce. Many couples discuss prenuptial agreements in order to formalize the understanding of how marital property will be split if they divorce.

Admittedly, many couples find it difficult to discuss a prenuptial agreement in the early stages of their relationship because a prenuptial agreement has a stigma attached to it for many couples. However, there are a few points to consider before creating a prenuptial agreement. While one partner may be comfortable discussing a prenuptial agreement, the other may not be. To many people, it seems as though the person is saying “That although I wish to spend the rest of life with you, I do not trust you completely.”

A prenuptial agreement is supposed to protect those assets that a partner possessed before the marriage. If a partner does not own any property, there may be little point in considering a prenuptial agreement. For example, if a person is not earning more than $100,000 in a year, there may not be justification for creating a prenuptial agreement.

Typically, the people who may need a prenuptial agreement are those who are getting married for the second time and wish to protect their children from the first marriage. There have been very many unusual divorces where one individual may break up with the partner and take all of the assets before leaving the country. A prenuptial agreement would definitely help to protect the spouse in such a situation.

Source: The Huffington Post, “What To Consider Before Asking For A Prenuptial Agreement,” March 2, 2014