Most people know what a prenuptial agreement is, but few want to actually talk about it. It’s perfectly understandable to feel this way, as the prenup is a very hard topic to talk about. The discussion will entail tricky financial situations and valuable assets, among the myriad other elements that could come up in a prenup. So the most important lesson to remember about prenups is that before you have the conversation, you want to organize your thoughts and prepare yourself. Remember, as important as the prenup is, the conversation must be approached and handled delicately.
What factors should you consider before having the prenup talk?
First of all, you need to pinpoint what assets you want to protect should a divorce arise. This is easier said then done, but with the help of an experienced divorce attorney, you could find assets that you never would have thought about prior to signing a prenup. This isn’t to say that only couples with vast or valuable assets should get a prenuptial agreement — prenups can be vital contracts, regardless of the couple. However, the more assets you have, the more risk you assume in a divorce if you don’t have a prenup to address them.
Another aspect to remember about you impending marriage is debt. When you are married, your spouse’s debt becomes your own (in a way). Outlining which debt stays with you and which goes with your spouse in the event of a divorce can be a huge issue to eliminate.
Last, but not least, remember that if you and your spouse simply can’t agree on a prenuptial agreement, it’s best not to push the issue too hard. You can always wait until after you are married and sign a postnuptial agreement.
Source: Reuters, “What To Consider Before Asking For A Prenuptial Agreement,” Nov. 27, 2013