Over the years, prenuptial agreements have become more common. In fact, studies show that millennials and younger generations are more likely to have a prenuptial agreement than older generations.
But is a prenup right for you? Here are some factors to consider if you are getting married.
Separate property
If you or your partner has separate property, having a prenuptial agreement makes it easier to protect it in the event of a divorce. A prenup is a contract that specifies the individual property parties own before marriage, allowing parties to sell, manage and shield it from division.
It is worth noting that separate debts and other liabilities can be part of a prenuptial agreement, as well.
Spousal support
One of the thorniest topics people face in a divorce is in regards to spousal support. You can minimize these conflicts by working out spousal support in your prenuptial agreement. Parties can decide on the duration and amount of support, which can be a much easier discussion when both people love and trust each other.
Thus, if either party has strong feelings in favor or against spousal support, you can talk about it ahead of time and work out the details in your prenup.
Your legacy and family ties
Heirlooms, inheritances and family businesses can also be important reasons to have a prenuptial agreement. The contract can ensure money or specific property stays in an individual’s family.
Protecting these items can be especially critical for people who have children from previous relationships and want to preserve their inheritance.
Certain marital expectations
A binding contract may not be the appropriate vehicle for matters like marital relationships or maintenance of physical attributes. However, parties may address certain personal rights and obligations in their prenuptial agreement.
For instance, partners might discuss financial management responsibilities or how they will resolve arguments.
If any of these areas are important to you or your partner, a prenuptial agreement can be a valuable tool to have in place. If none of these present issues, then a prenup may not be right for you. Whatever you decide, it can be wise to base your decisions on what is best for your situation rather than what may be trendy.