13 Things You Need To Know About Prenups Before Saying “I DO”
• If one partner is heavily in debt and the other is debt free, a prenup can protect the debt-free spouse from the burden of having to assume that debt.
• In some cases, a partner who has a successful career at the time of the marriage plans to give that up after the ceremony. A prenup can lay out a formula to compensate the injured party for the lost earnings that career would have generated during their marriage if the marriage fails.
• A prenup agreement can spell out the details of decision-making and responsibility of the two parties in advance.
• When there are children involved at the time of divorce, a prenup can spell out a reasonable limit of child support payments one spouse will have to pay to the other.
• For older persons entering into a second marriage or more, a prenup can protect the financial interests of those people how have built considerable wealth over their lifetime.
Cons of Prenuptial Agreements
• Some agreements require you to give up all rights of inheritance from your spouse’s estate if they die. Be forewarned that even if your spouse dies and doesn’t include your in their will, you are entitled by law to a portion of that estate.
• Under the laws of most states, any increase in the value of your spouse’s business that you contributed to is considered community proper, and you have a rightful claim to your share of that increased value. Be aware that some prenup agreements have specific clauses nullifying that asset sharing.
• Beginning a marriage with a written contract that spells out how to dissolve the union in case of divorce or death can instill a sense of distrust from day one of the marriage. Both parties need to understand the practical benefits of a prenup and that it is not a forecast of things to come.