One widespread belief about prenuptial agreements is that they are only useful for rich and famous people. But this is not true at all. Prenups can benefit any couple with varying financial circumstances.
Millennials are signing more prenups than ever before. Here are some reasons why you should consider doing the same before your marriage.
Avoid the government dictating how you split your property in a divorce
Every state has unique laws about how property division works during a divorce. If you get a divorce without a prenup, it is most likely that a judge will determine how to divvy up your assets depending on the state statutes. By creating a prenup, you get to choose what happens during a divorce instead.
Ensure fair asset division
If there is a big wealth disparity in your relationship, a prenup may be a smart idea. The wealthier spouse may lose a lot of their money in a divorce. A prenup can shield some of these assets.
Simplify the divorce process
Of course, no one enters into a marriage anticipating a divorce. But because it is a possibility, why not prepare to make it as easy as possible? Having a prenup in place streamlines divorce because it requires you to negotiate and agree on the distribution of assets beforehand. This means less arguing, stress and expenses if your marriage ends.
Safeguard yourself from debt
A divorce involves splitting up debt too. If your spouse has a lot of liabilities, you can protect yourself from it with a prenup.
Open communication
Healthy relationships rely on honesty and transparency. Marriage requires you to talk about finances anyway, so why not open up the dialogue with a prenup? This gets any differences in opinions about finances out in the open from the get-go. Even if you and your spouse decide not to sign the contract, the conversation starts your marriage off with trust and communication.