reasons to get a prenup

Modern Reasons to Get a Prenuptial Agreement

When prenups first became popular, they were often seen as a weapon by which wealthy spouses took advantage of less sophisticated (and less wealthy) partners. Therefore, it’s not a surprise that so many people today have an instinctively negative reaction when they hear the term “prenuptial agreement.” To make it worse, it seems like every week we are hearing about another messy divorces amongst celebrities and their high-stake prenups. As  mentioned in Wendi Schuller’s  new book, The Global Guide to Divorce, prenups can be crucial to your “happily ever after”, whether you stay married or get a divorce.

The Global Guide to Divorce also relays that marriage and divorce is evolving with the times. Modern-day marriage is not only a romantic relationship, but is also a business partnership. In fact, marriage throughout history has been an arrangement of sharing property, while the romantic aspect of marriage is a relatively modern development. Similar to a true business partnership, prenuptial agreements are used to protect both spouses.

The divorce attorneys in Scottsdale suggest prenups for people in their 30s or older with any substantial assets, children or a former spouse. Prenuptial agreements are particularly useful for people who are entering into a second marriage. In the case of remarriage, one or both spouses may already have significant assets, and may want to arrange that family members from the first marriage inherit property and assets.

Modern-day couples are obtaining prenups for five main reasons:

  1. Spouses who have children from a prior marriage are often concerned about their future financial protection. A prenuptial agreement can be used to ensure your children (and your spouse) will be taken care of as you wish, if something happens to you.
  2. A prenuptial agreement can protect against joint liability on individual debts. For example, if a spouse owns a small business and personally guarantees loans, a prenup can limit legal responsibility and preserve assets for both of the spouses in the marriage.
  3. If one spouse co-owns a business, a clear succession plan is often necessary to obtain financing. A prenup can make running the business easier as well as clarify what happens if the business owner dies.
  4. By clearly showing how assets will be titled during the marriage, a prenup can facilitate gift and estate tax planning.
  5. Although laws are in place to protect inherited property at the moment, they can always be challenged or changed. Address any inherited property beforehand, in a prenuptial agreement. You’d hate to see your grandparent’s beach home just because your spouse is entitled to half of it.

Experts believe that prenups will become more socially acceptable in the coming years. Both men and women will be more interested in safeguarding their future by beginning their marriage with a prenuptial agreement in place.

Amanda Rumore, author of this article, is a family and parenting expert. She has worked throughout the US in marketing and public relations for a variety of industries, as well as worked for various media outlets. Amanda currently resides in Phoenix, AZ., where she is a freelance writer.