Prenuptial agreements are an interesting document because while almost everyone has at least heard of them, most people really don’t understand why they are often a good idea. Thanks to many books, TV shows, and movies, prenuptial agreements have gotten a reputation as being just a way for a wealthier partner to protect themselves from a partner with fewer assets. While that is certainly one thing that can happen, a prenup is not just to benefit the wealthy. Learning how prenuptial agreements really work, and how they are designed to help both parties entering marriage alleviate much of the fear that many people experience.
Clearly Identifies Debts and Assets
One of the things many people love about prenuptial agreements is that it forces both parties to reveal all of their debts and assets. If a wealthier partner tries to hide assets at this time, they will likely not be protected should a divorce ever occur. For this reason, those entering a marriage with fewer assets often appreciate the sense of clarity (and protection) that this type of document can provide.
Predatory Agreements are Often Invalid
Another thing that may remove your fear of a prenup is that if the courts find that the document is predatory in nature, it will likely be thrown out. So, if you have fewer assets than your partner and they write up a prenup that attempts to give them full financial protection without any advantages for you, it is unlikely to hold up in court. A good attorney will work hard to create a prenup that offers clarity and protection based on the couple’s unique situations.
Excellent for the “Average” Couple
Prenuptial agreements are most commonly thought of as legal documents for the wealthy, but they might actually be most beneficial to couples with more modest assets. It is much easier to discuss how assets should be handled should the unthinkable (divorce) occur when you are still very happy and in love. Since you and your partner are working together, it takes out many of the negative emotions that often fuel painful court battles during divorce.
While nobody plans on a divorce, discussing it openly and honestly can actually help to put your marriage on a stronger foundation from the beginning. Creating a prenup will require that both parties be willing to have honest conversations about many key areas of life including finances, fidelity (including what may constitute cheating), living arrangements, and much more. While you can (and should) have these conversations before marriage no matter what, a prenup will often help to encourage them to take place.
Learn More Today
If you are in a relationship that is headed toward marriage, make sure you at least consider having a prenuptial agreement put in place. It can help strengthen your relationship today and prepare you for whatever the future may hold. Contact Rotella and Hernandez today to schedule an appointment.