Why Prenuptials are a Good Idea
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What is a prenuptial agreement?
A prenuptial agreement is a legally binding contract that allows you to feel financially secure in a marriage by determining what exactly will happen to your assets in the event of divorce or complications. Without a prenuptial agreement, divorce can lead to a lengthy process where the state will be in charge of administering the division of resources. This may result in unexpected financial or property loss, so it is smart to consider what your prenuptial agreement can do to protect your expectations.
Is a prenuptial agreement the right option for me?
Considering a prenuptial agreement is an important decision for any couple preparing for marriage, but especially for those in later stages of life who are remarrying. Recent studies carried out by the Pew Research Center have shown that remarriage is increasing among adults over the age of 55. Because remarriage involves previous relationships and accumulated financial and physical resources, it makes sense to consider how a new spouse might impact these people and reserves.
There are different kinds of prenuptials that can be used to meet your needs. These include financial, lifestyle and length considerations. Some find the financial security of a such an agreement to be most important while others may look to certain lifestyle expectations to play a larger role.
Financial security is offered by protecting your personal resources in the event of a divorce. These resources can include property, cash, bank accounts and retirement funds.
Lifestyle considerations can include how you expect your spouse to care for you emotionally and in your home. This can include childcare, household responsibilities as well as life/work balance expectations.
Prenups can also be given a date of termination, a sunset date, where they no longer go into effect seeing as the relationship has lasted for a certain amount of time.
Will I need help?
A prenuptial agreement is closely tied to your estate planning. Estate planning applies upon the death of an individual while a prenuptial can apply on the event of the death of one of the spouses, but also applies in the event of divorce. Because of this close relationship it is key to make sure that your prenuptial agreement and your estate planning are aligned. If your prenup and estate plans are in conflict, you may create confusion that could delay your legal expectations. For this reason legal assistance is always recommended both in the event of new estate planning or prenuptial agreement.
What if I feel uncomfortable proposing a prenuptial?
There is an ill-placed stigma around prenuptials that they can indicate a future expectation of divorce. A prenuptial does not imply that the new marriage is doomed to fail, rather it can make all parties feel more secure in their relationship. This not only includes the people being married, but their families and dependents as well. What a prenuptial really does is provide a safety net to you, your spouse, and your families to feel independently secure. Being able to talk to one another frankly about finances and expectations are important steps in your prenuptial agreement which can lead both people to benefit from an honest understanding of one another. It should be seen as a sign of commitment, rather than skepticism, that you and your spouse are willing to create an agreement that accurately represents your wishes.
What are next steps?
If you are considering a prenuptial, seek counsel with your spouse, family and ultimately legal professionals who can provide you with the peace of mind you want while embracing your budding marriage relationship. If you have questions regarding your estate planning and its relationship to your prenuptial we would be happy to help you here at Hillsborough Wills & Trusts. Our goal is to provide you and your family with the highest quality Estate Planning so you can live your life to the fullest.
Call us today at 919-245-8440 or contact us at: https://hillsboroughwills.com/contact