To some people, the idea of a prenup seems unromantic, but it may come in handy when things go south in your marital life. Divorce is a possibility in any marriage, and a prenup legally binds the divorcing couple on the division of property between them.
That said, prenups are not only for the wealthy. Ideally, if you have assets of any kind and are getting married, you should consider getting a prenup. Here is why it is essential.
A prenup helps in planning for the future and avoid potential financial conflict
With a prenup, you and your spouse can plan for the future with peace of mind. Being open about your finances regarding debts or investments will not only bring you closer as a couple, but it will also save you constant financial squabbles. In addition, certain aspects of prenups like health insurance and retirement benefits will ensure you are financially secure years down the line.
It puts you in control
Without a prenup, property division following a divorce is at the whims of the state laws. You might end up in a worse financial position with some of these laws, which is why it is very advisable to get a prenup. It will define marital property and sole property, which will protect your finances in case of a divorce.
Suppose either of you had been married or had kids from a previous relationship. In that case, a prenup will help protect the financial interests of those children by differentiating property from the old marriage and the new one.
There is more to a prenup than property division
A prenup will help you avoid an acrimonious divorce wrought with court dates over estate battles. A sound prenuptial agreement spells out what is in it for each spouse, and having a clear understanding of such issues will protect your legal rights.