What should you consider before creating a prenuptial agreement?
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 world, 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 and has limited earning potential, there may be little point in considering a prenuptial agreement on their behalf, unless they intend to obtain something from there soon-to-be spouse.
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, or have significant business interests or earning capacity. A prenuptial agreement would definitely help to protect the spouse.
Source: The Huffington Post, “What To Consider Before Asking For A Prenuptial Agreement,” March 2, 2014