Asking for a prenuptial agreement, or “prenup” for short, doesn’t sound romantic. Your significant other may question your love since a prenup is a legal agreement which specifies how both parties will divide assets upon divorce.
However, it is wise to discuss such sensitive financial details. Even a person going into a marriage with little assets can benefit from a prenup. As you and your spouse start to accumulate assets during your marriage, it helps to ensure what both of you acquire during marriage isn’t left up to a judge to divide.
The following are the main reasons why prenuptial agreements are a good idea:
- Protects your separate property from being involved in property division upon divorce
- Defines what property is considered marital or community property
- Avoid extended court proceedings, which results in increased attorney fees
- Supports your estate plan
- Assigns debt to the appropriate spouse to avoid both spouses sharing debt liability
- Reduces conflicts during a divorce
While the timing may not be right, making a prenup may actually strengthen your relationship. Communication about money matters can support good communication in your marriage. Even if you do not end up signing a written agreement, speaking honestly about money and property can reduce or eliminate misunderstandings which you may encounter during your marriage.