With the average age of marriage increasing, people are bringing more and more assets into a marriage. With that in mind, you should consider how to protect those assets in the event of a divorce. People have a tendency to scoff at the idea of a prenuptial agreement, also known as an antenuptial agreement or ‘prenup.’ Prenups are viewed as a sign that you do not think your marriage will work out or that you do not trust your future spouse. But I will ask you this: Would you rather decide how your assets and liabilities are divided when you are in love with your partner and have each other’s best interests at heart, or would you rather wait to have that discussion until the worst-case scenario has occurred and you now despise each other?
What goes into a prenup?
A prenup helps ensure that you and your future spouse have a clear understanding of the division of finances and property if a divorce were to occur. It can also be used to outline how income will be utilized during the marriage, i.e. who pays what bills. In addition, a prenup affords you the opportunity to discuss various scenarios, such as whether you will receive additional finances at the time of divorce if you stayed home to take care of the kids.