Prenuptial agreements have gotten the reputation that they’re only necessary for wealthy New Jersey citizens. In reality, that’s a common misconception that needs to be righted. The truth is that nearly every person who is planning on getting married could benefit from a prenuptial or premarital agreement.
What is a prenup?
A prenup, also referred to as a premarital agreement, is a signed contract between two parties established before they are married. The contract can state whatever the signers want it to about how to manage their assets in the event of a divorce. Most commonly, couples will include what assets they want to keep separate, even during marriage.
Consider marriage a legal business relationship
At the end of the day, marriage is considered a legal business relationship. It makes complete sense to be practical about getting a prenuptial agreement to help protect a person’s financial well-being in the event that the relationship is terminated at some point in the future. Many couples discover that simply the idea of a prenup brings up a conversation regarding issues like finances and children. They end up discussing these issues that they never did prior to talking about the prenup.
Set a clear exit strategy
When it comes to a prenuptial agreement, couples can outline how assets are to be dispersed if they get divorced. This makes the divorce process much smoother as they can simply follow the prenup and not have to battle over each asset.
A prenuptial agreement can be a great idea for all couples. It helps to bring up topics that would otherwise get swept under the rug until years later in the marriage, and the document can work to protect everyone’s financial interests.