Premarital agreements are helpful to have in certain situations that couples who are marrying should be familiar with. Couples who are getting ready to get married should be familiar with when it is a good idea to have a prenuptial agreement.
When it is a good idea to have a prenuptial agreement
There are several common reasons to consider marital agreements including:
- When future spouses hold significant assets prior to the marriage
- When future spouses have a significant stake in a family business or family assets
- When future spouses fully or partially own a business
- When future spouses have children from a prior marriage
- When future spouses have had a prior divorce or multiple prior divorces
- When future spouses hold significant debt or plan to incur significant debt
There are several steps to creating a prenuptial agreement including communicating early and openly; consulting an attorney; gathering financial information related to assets and liabilities; determining whether a prenuptial agreement is a good idea for the couple; outline financial and marital goals to include in the agreement; draft and negotiate agreement; review the final agreement; and execute the agreement. There are also important requirements associated with prenuptial agreements that must be met to ensure they are valid.
Prenuptial agreements can protect the interests of both spouses. The conversation about a having a martial agreement does not have to be uncomfortable. It can be used to ensure that both spouses understand the potential benefits of a prenuptial agreement so they can decide if it is a good idea for them and are familiar with the legal resources to help them with their prenuptial agreement.