When people think about getting married, words like love and forever tend to come to mind. Two words that definitely don't come up right away are "prenuptial agreement." There's nothing romantic about a "prenup". But there are plenty of scenarios where it might make sense to have a lawyer draft such an agreement before your big day, if both you and your future spouse are willing to look at the situation logically.
Here are a few examples to keep in mind.
When You Are Remarrying
If you've been through a divorce before, you might likely know what can happen to your finances when your former spouse's attorneys show up to claim half of your estate. Remarrying a new spouse can present new problems though, such as how much money the children from your previous marriage are entitled to in the event of your death, etc.
A prenuptial agreement is a good way to let all members of your family know what the future will hold for everyone financially.
When One Partner is Heavily in Debt
No matter how much you might love your future spouse, no one wants to get dragged into someone else's mess. If one of you is in a bad financial situation, this situation could consume both of you once you are legally married. A good attorney will be able to draft a prenuptial agreement in such a way that will keep as many of your finances separate as possible and hopefully avoid the more responsible spouse from having to deal with their partner's high debt.
When One of You Own Your Own Business
If you own your own small business and are the sole private owner, a prenuptial agreement may be a good way to protect your business interests going forward. Such an agreement would prevent your spouse from filing a claim to a large percentage of your business if you break up. The agreement could specifically spell out what job duties the spouse might do within your business together and what their financial reward for that involvement is.
Having to go to your fiance and ask for a prenuptial agreement is not something most people want to do, but if you are both smart, you should realize that there are some scenarios where doing so just makes sense. If you are remarrying a new spouse after a divorce, marrying someone who has a lot of debt, or own your own business, you owe to yourself and your future family to contact an attorney today.
To learn, contact a company like Micheau & Young with any questions you have.