Love on Paper: the Pros and Cons of a Prenuptial Agreement
Gossip circles love to speculate on whether a couple had a prenuptial agreement, especially if a marriage doesn’t work out. For those who are considering tying the knot, it may be difficult thinking about what will happen if your spouse cheats or if the love you feel now begins to fade away. In reality, marriage is much more than a romantic relationship, it is also a business relationship. Before you decide for or against a prenup, take into consideration the following pros and cons:
- If you have a business, a prenuptial agreement can protect it from being divided up upon divorce.
- If you are planning to give up your career to take care of children, a prenup can ensure that you are compensated for that sacrifice.
- A prenuptial agreement can put a limit on how much alimony one spouse will have to pay the other in the event of divorce.
- Prenuptial agreements can protect older individuals, people who remarrying, and those who are wealthy.
- A prenup can protect an individual who is debt-free from incurring the debt obligations of their spouse.
- Premarital agreements can also include details separate from the financial aspects of a relationship, such as responsibility-sharing and decision-making.
If you are able to think of marriage as a sort of business relationship, you may be doing yourself a favor. Think of it this way, would you sign away a severance package from work just because you are exciting about working for the company? If the answer is no, you may want to consult a family law lawyer before you walk down the aisle into happily ever after.
- Prenuptial agreements can also affect the surviving spouse after the other dies. The agreement can exclude an individual from inheriting the estate of their spouse after death.
- For some people, a prenup can impart a sense of distrust at the start of a marriage since it lays out the details of what will happen in a divorce or upon death.
- If one spouse contributed to the other’s growing business by entertaining clients, taking care of the home while the other was away, or any other supportive acts, they may not receive a portion of the increase in the business’ value upon divorce or death.
- A spouse’s better judgment may be clouded by love in the premarital stage and they may agree to something that doesn’t serve them well.
- An individual who earns significantly less money may not be able to sustain their married lifestyle if a cap on alimony had been established.