Prenuptial Agreements - When to Consider One

Why Marriages Don't Work Out | When to Consider a Prenuptial Agreement   
Reasons Some Prenuptial Agreements Are Not Valid | Talking About the Prenuptial Agreement
Constitutional Restrictions on Devise of Homestead Property | Waiver of Rights in Retirement Plans 
The Art of Marriage

We often think of prenuptial agreements being used by rich people to protect their property when they get married. There are many more reasons to have a prenuptial agreement. Let's talk about them:

Many of our clients report that the discussions about the prenuptial agreement helped them have a more stable marriage. They had to think carefully about their financial situation, the significance of the marriage, and consider their future together. They had to think about their career, family, and economic goals. This can be stressful and dealing with that stress brought them closer together as they planned together for their future.

Most people understand that by getting married they are entering into a legally binding contract written by state law. That contract provides for their financial rights and duties during their marriage and in the event either of them dies or they divorce.

Prenuptial agreements make sense when one or both partners have children from a prior marriage. A prenuptial agreement may be the only way to assure children are protected in the event of divorce or death. Here is an example: A person who has two adult children from a prior relationship wishes to remarry. When that person dies, his or her surviving spouse may inherit everything. The adult children from the prior relationship would receive nothing, unless a will says otherwise.

Prenuptial agreements are often used as part of estate planning to minimize family tensions and to assure that adult children and other relatives are protected in the event of death or divorce. Prenuptial agreements can greatly reduce the family stress that a new marriage might cause. Your partner generally shouldn't have any objection to your adequately providing for your children.

Family pressures to protect and preserve a family business may be minimized with a prenuptial agreement. Your business partners, particularly if they are family members, may not want to end up with your spouse as a partner.

One or both of you may have been through a difficult divorce in the past and never want to go through that again. A prenuptial agreement should minimize those concerns. Such a partner is often reminded of all of the emotional pain from the prior divorce when he or she thinka about the possibility of breakup of the intended marriage. Counselors are often effective in helping put the past into perspective so it doesn't spill over and damage your new relationship.

Prenuptial agreements can be used to define the contribution each partner will make to specific assets, such as a home or business. There may be a desire to create rights in one partner's non marital property for the benefit of the other, such as providing a house if the spouse who owns the house dies first.

There may be a concern on the part of one partner that the real motivation for the marriage is financial. A partner may have a strong need to know that he or she is being married "for myself and not my money." One partner may try to extract financial concessions from the other in response to that fear. In such situations, a phase out of concessions over time may be appropriate to meet the fears but not continue them for the next 20 years.

Prenuptial agreements can deal with lifestyle issues, such as children, education, and roles in the marriage. They allow you to plan for the future.