Why A Prenuptial?
Most people do not want to think about divorce and division of property before they even get married. However, with 41 percent of first marriages, 60 percent of second marriages and 73 percent of third marriages ending in divorce, it can be smart to have a prenuptial agreement.
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Function
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A prenuptial agreement outlines financial considerations in the event a marriage fails. "Prenups" often detail how assets will be divided, who is responsible for debts and whether a spouse will receive alimony.
Benefits
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While some people call prenuptial agreements "divorce agreements," they can help a marriage, according to the Divorce and Family Law Center. Prenuptial agreements force people to talk about finances, a common cause of disagreements between husband and wife.
Misconceptions
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Prenuptial agreements are not only for the rich. Prenuptial agreements are useful for people with children from previous marriages, people who earn significantly more money than their spouse, people who have significantly more assets than their partner and people who own a business.
Warning
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A prenuptial agreement cannot change child support obligations of either spouse. These agreements also can be invalidated if they are not in writing, one party was pressured by the other, or the contract contains false information about income, liabilities or assets.
Considerations
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State law may provide some people sufficient protection. Community property states--Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin--split property accumulated during the marriage evenly and treat separately assets accumulated before the wedding. It is wise to check with a local family law attorney about how the law will apply to you.
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- Photo Credit Image by Flickr.com, courtesy of Jeff Belmonte
