Prenuptial has always had a negative connotation. This single word can easily wither romance. However, people have come to accept that nothing is permanent in this world, most particularly marriages which many ended in divorce. Having a prenuptial agreement is the smartest financial planning that couples should adopt, according to financial and legal experts.
Experts agree that marriage is an emotional, financial and physical union. A sample prenup can help couples create a healthy financial well-being in their marriage. It is like having a business arrangement or an insurance policy that aims to eliminate the emotion that is naturally involved in a marriage.
Who Needs a Prenuptial Agreement:
A prenuptial agreement acts as a contract between two individuals who are planning to get married. In a nutshell, the contract contains details of how the assets of both parties will be distributed or handled in the event of death, separation or divorce. Prenuptial agreements were in existence thousands of years ago in one form or another, especially in Far Eastern and European cultures where members of the royal families made provisions to protect their wealth.
In today’s modern society, a prenuptial is not an exclusivity of rich or wealthy people. “Even individuals who were able to save only $30,000 can adopt a prenup agreement” says Kathleen whit BLSAPC. In his book “Premarital Agreements: When, Why and How to Write Them,” author Joseph P. Zwack notes that people who have saved a little are more keen to have a prenuptial agreement than those who have millions because they know that they have worked hard to earn that small amount.
You can check out a sample prenup before you get hitch if you own assets such as stocks, retirement funds or a home, own a business, received an inheritance, have children or grandchildren from your previous marriage, you are more wealthy than your partner, you are supporting your partner through college, will pursue or pursuing a license or degree in a lucrative profession, you need to take care of loved ones such as your parents or expecting a huge sum of money.
Why You Need a Prenup:
If you love a person, money seems to be the last thing to enter into your conversation, much more consider the issue before tying the knot. It has been proven time and again that couples who are in love looked at the world in colored glasses. However, you need to get your head straight and prepare for the possibility that love loses its novelty and money can bring both heartache and trouble in the long run.
A prenuptial agreement can reduce the emotional and financial impact of a divorce. If you have no prenuptial agreement, all your assets will be distributed to you and your partner by the state. Your hard-earned money may end up being given to the children of your spouse from his/her previous marriage rather than your children. Or worst, your assets may go to the partner of your spouse who earned it just because he/she got married to your former wife/husband.
How to Bring Up the Subject of Prenup:
Discuss the issue of a prenup with your partner as early in your relationship as possible. If you have been open with your partner since the start of your relationship, the subject of a prenuptial will not come as a big surprise. Make sure that you discuss the subject before the engagement. Explain to your partner that a prenuptial agreement is important and why you want to have a contract.
Honesty is an important element in any solid prenuptial agreements. You and your partner should fully disclose your assets and examine a sample prenup to give you some opinions on how you can create a fair prenuptial agreement. Signing a prenuptial document a month before the wedding is the ideal way to do it.