If you’re engaged, chances are that you’ve gotten differing views from family, friends and colleagues on whether or not you should get a prenuptial agreement. Some people may argue that you need to protect yourself and your assets should the marriage end in divorce. Others may contend that getting a prenup can damage a couple’s trust in each other.
Every couple enters a marriage with varying levels of assets, debt and responsibilities. That’s why prenups are more important for some than others. Below are two key situations in which a prenup is a wise choice to help avoid serious financial issues should you not live happily every after.
You have assets that you want to keep separate
If you have significant assets — whether they are liquid, like a large inheritance, or tied up in property or a business — and you want to help ensure that those assets remain yours alone, facilitating a divorce without splitting assets, a prenup is important. Of course, you still need to be careful not to commingle those assets with your spouse to ensure that they remain separate.
If you have ownership in a business, a prenup is recommended to keep your spouse from being able to claim part of that business that you’ve started and built on your own or that you’ve inherited or share with your family.
You have debt
Most everyone has some debt. However, it’s essential for engaged couples to have a frank discussion about just how much each of them has. People are often embarrassed to admit that they’ve run up thousands of dollars in credit card debt or have outstanding medical bills.
Too often, people don’t learn these things until it’s too late and they end up with responsibility for their spouse’s debt. A prenup can help couples keep the debt they bring into the marriage separate from that of their spouse.
As you move through your divorce, it can help to think about the future in every aspect: Property division, alimony, child support, custody rights, and everything else. It’s also crucial to consider the emotional aspects, such as understanding if dating during divorce is considered infidelity, as this can have implications in certain legal situations. Make sure you know what legal options you have.
Source: PopSugar, “Should You Get a Prenup? 4 Questions to Ask Yourself First,” Jen Glantz, Nov. 26, 2017