Alright, groan and moan as much as you like and we sure understand! You’re happily planning your wedding, not its dissolution. Not really a romantic thought, right?
What exactly is a prenup? It’s a “ a legal agreement that specifies how couples will divide assets in the event of divorce” Historically, prenups were for the affluent – the wealthy lot who need to protect their extensive assets, businesses and major investments. However, nowadays, more couples from the middle class draft prenups and the most interesting fact is, more women are requesting one, according to a survey conducted by the American Academy of Matrimonial Lawyers.
Why is this so? Economic conditions have got people thinking about their finances. Statistics in the US have shown up to 50% of marriages ending in divorce, so couples are now realistic about the possibilities of a split. People are also getting married older and have more assets they wish to protect in case their marriage go down the drain.
And now, you might say, you or your fiancé have no assets, so you won’t be able to take half of nothing. Actually, you might end up with half of less than nothing – your spouse’s debts. Credit card debts, loans and other liabilities brought into the marriage might haunt you once you split, so it makes perfect sense to protect each other from any of these debts.
You may also have some things that you’d like to keep separate, like an unexpected inheritance, a retirement plan or a property passed down to you by your parents.
Prenups should be discussed thoroughly. Start talking soon. It is critical to have an honest discussion about your finances and how you will manage these as a couple.