Prenuptial and postnuptial agreements
A prenuptial agreement is a contract between two people who are engaged to be married that covers what happens to the individuals' assets (financial or otherwise) in the event of a divorce.
While extremely wealthy individuals use prenups most often, usually to protect familial assets or wealth earned before marriage, prenups can be a good tool for almost everyone. Even couples of modest means can find value in a prenup.
A prenuptial agreement, when properly negotiated, can help couples discuss and determine the following assets and interests:
Retirement or education funds that either party may have accumulated before marriage.
Property that either party owns at time of marriage.
Property interests of any children from previous relationships.
Obligations of spousal support should the marriage dissolve.
Educational and religious upbringing of children born from marriage.
Finances of each party and responsibilities should the couple decide to part ways.
A provision that one spouse isn't obligated to pay the debts of the other spouse.
Handling an inheritance.
Ownership rights in life insurance or disability policies.
Protect your assets. Protect your future. Create a clear plan. Discuss and negotiate together.
Protect your assets. Protect your future. Create a clear plan. Discuss and negotiate together.
Let’s be clear—your prenup does not have to contemplate every asset and item you own, or every divorce scenario. You can create a prenup for a single purpose.
If you received a family heirloom as inheritance and want to make sure that if your marriage ends, you’ll get to keep that item, you can draft a prenuptial agreement that states that the family heirloom is yours. The prenup can also specify that items you inherit during marriage will remain your separate property.
Divorce is emotional. Even if you know it’s the right decision, it’s still an overwhelming and upsetting process.
When you’re negotiating with your spouse about who gets what, emotions often run hot and can cloud your judgment about asset distribution. Contemplating these items with a clearer head, especially at the beginning of the relationship when there are fewer hurt feelings, is better for everyone.