Want a Stronger Marriage? Consider a Prenup

Most of us only know about prenuptial agreements because of the very public exploits of the rich and famous, who seemingly have a marriage shelf-life of three to five years. However, when we regular folks get married it’s for life; so, there’s really no need to think about a prenuptial agreement, right? You may want to think again. And, it’s not because your marriage has a 50 percent chance of becoming a divorce statistic, though that is the unfortunate reality today. Rather, it’s because the financial dynamics of marriage have evolved to where a husband and wife may have much more to protect.

No offense honey; I love you, but...

Certainly, any discussion of a prenup between love birds can dampen the mood; but, due to the real-world dynamics of marriage today, an increasing number of couples are looking at it from a purely practical standpoint, especially those going to the alter for a second or third time. Prenups may not have the stigma they once did, but they shouldn’t be entered into for the wrong reasons as they can do a marriage (or divorce) more harm than good if not properly designed.

A prenup is a legal document drafted by an attorney that describes the pre-marriage financial assets of both spouses, and, in the event of separation or divorce, specifies the disposition of assets held before, during and after marriage. Essentially, a prenup enables a couple to step outside their emotions to consider their financial arrangement and what is best for the marriage. In this way, prenups are designed to make a marriage stronger.

What’s Mine is Mine

Still, prenups are not appropriate for everyone. They only make sense when one or both of spouses brings a significant amount of assets or debt to the marriage. Any couple should consider entering into a prenuptial agreement when one or both spouses has:

• Assets, such as property, cash, securities
• Ownership in a business
• Potential inheritance
• Children from a prior marriage
• Family members dependent on them

Prenup as an Equalizer

It’s not uncommon in a new marriage for the couple to choose to have one of the spouses stay at home to raise the children or delay a career to obtain an advanced degree. For any circumstance that creates a financial disparity, a prenup can include a provision for “equalizing” the financial status of a spouse whose contributions to the family were not directly financial.

As Natural as Pre-Marital Counseling

Some couples may feel that, as practical as a prenup might be, even the mere mention of one can be bad “juju.” However, when used as a process to establish open communications on the subject of money (often a point of contention for married couples), it can actually strengthen a marriage. When both couples can feel more emotionally secure about their financial arrangement, all that is left are the practical decisions that must be made. Pre-marital counseling has become much more commonplace for couples interested in strengthening their emotional bond. It would seem to make sense to include some pre-marital financial planning to strengthen their financial bond.