Marriage comes with many commitments and responsibilities, including financial ones. One spouse or both may worry that the union could come apart, leading them to further worry about a future monetary situation. Someone who earned significant money before the marriage may not want to pay substantial sums to an ex-spouse who contributed little. A prenuptial agreement could address such concerns before the marriage starts.
Opting for a prenuptial agreement
Individuals entering a second or third marriage might understandably have concerns about whether the new marriage will last. The spouse may already have lost significant assets in a previous settlement and could be paying substantial alimony amounts. A prenuptial agreement may protect future assets if things don’t work out again.
Of course, the other party could refuse to sign a prenuptial agreement over unfair terms. The premarital agreement might cap how much a spouse receives in a settlement, but they could ask for a more equitable arrangement before signing.
Other reasons for a prenuptial agreement
Running a business comes with challenges, and a stressful divorce could add to the complexities. Removing a soon-to-be ex-spouse from any matters related to the business might keep a company on the right track. A prenup may serve as a way to keep businesses out of settlement agreements.
In addition, marrying someone with excessive amounts of debt could come with worries. The spouse not in debt might wish to avoid any dealings with creditors, and a prenuptial agreement could establish an arrangement that serves such a purpose.
There are also family matters that can be covered in a prenup. Whether starting a new family or having a newly “blended” family, someone with significant assets might want to protect their property for children and other dependents. Again, a prenup may support such goals.
Premarital agreements offer many benefits to individuals who want to start their marriage off on equal footing. However, a prenup is not for every couple, so it’s important to assess each person’s needs before deciding to write up a contract.