There are hundreds of things to consider before tying the knot: where to get married, a small ceremony or a huge party, red velvet or chocolate cake, or whether or not it’s a good idea to invite that family member.
A prenuptial agreement is a legal contract a couple signs before getting married to determine the distribution of assets, property, savings, and retirement benefits, in case of death or divorce. We often assume that only the rich and the famous sign these documents. But, couples of all financial backgrounds structure their marriage around them.
Premarital agreements are a deeply personal decision a couple makes. It’s not as simple as deciding where to go on your honeymoon. This is a huge decision that deserves both time and consideration. There are hundreds of things to consider before making this decision. But, we’ve narrowed them down to only a couple.
Here are some pros and cons to consider before signing a prenup.
- Protects family ties, lineage, and inheritance
- Further analyzes joint financial matters
- Protects any personal or business funds acquired before marriage
- Exposes any questionable financial activity on behalf of either spouse
- Financially protects children from previous marriages
- Prevents any conflict over assets from happening in the event of divorce
- It can create a lingering feeling of distrust
- Either party can develop resentment for their partner
- It creates tension between the couple
- It can strain a healthy romantic bond
- In the event of divorce, the document can favor one spouse
- It can be nullified if all assets and financials aren’t disclosed
There is a lot of societal stigma to prenuptial agreements, but they are slowly becoming more and more popular. Young couples are getting a head start on mapping their economic strategy by budgeting and taking care of any debt. It’s not exactly the most romantic thing in the world, but it gives their relationship a sense of balance.
When you start to think about how you want to spend the rest of your life with your partner, it’s smart to bring finances into it – several couples are already doing it. Prenups are not the easiest topic to bring up, but it’s one that will give you a sense of security in the end.