According to the American Psychological Association, approximately 40-50% of first marriages end in divorce. The divorce rate for second marriages is even higher, estimated to be 60-67%
Divorce is a reality, most people enter a marriage and believe it will never happen to them, but the statistics tell a different story. Signing a prenuptial agreement prior to marriage may not be comfortable but it is smart. Each person comes into a relationship with their own financial history and there is nothing wrong with protecting yourself in case you decide to divorce.
Prenups are not only for people who have a lot of money, no matter your financial situation it is never wrong to protect your interests.
Here are some of the reasons a prenup is a smart idea.
Not Everyone is Genuine
We have all heard horror stories about someone who took advantage of another and married for the money, unfortunately this happens. A prenup prevents a person from taking what is not rightfully theirs and you can get a pretty good idea about the type of person you are about to marry by their reaction to being asked to sign a prenup. If they are more interested in what you own than who you are, that’s a red flag.
Honesty & Communication
Having a genuine, honest discussion about finances prior to marriage makes for a healthy relationship. You should go into the marriage knowing exactly how the other person handles money and what they expect to happen after the marriage. Finances are a difficult point of discussion for most couples, but they shouldn’t be. If you cannot talk openly about money and other major decisions, you are entering the marriage on shaky ground. Anything important should be discussed before saying I do.
Makes it Clear
A prenup is a legally binding document that defines ahead of time what will happen in the event of a divorce. Having one makes this clear so that you can avoid major battles if divorce happens. Considering 40-50% of first marriages and 60-67% of second marriages end in divorce there is no downside to having a prenup to protect yourself. When a relationship is new it is often hard to imagine life without the other person, but life and people change and relationships end. Being prepared benefits both parties.
Assets
No two people go into a marriage with equal assets. Finances are complicated. Salaries, pensions, retirement accounts, inheritances, and real estate all make up our financial holdings. If one spouse has significantly more wealth, they run the risk of greater financial loss during a divorce. A prenup acts as an insurance policy to protect both parties.
Avoid Surprise Debt
A prenup can address more than just the money each person has going into the marriage. It can also include debt such as home, auto and student loans, credit card debt and other financial liability. A prenup can state specifically what happens to that debt if a divorce takes place.
Less Costly Divorce
Divorce proceedings can be extremely expensive, attorney fees and court costs can add up quickly and the longer the process takes the more expensive it becomes. Both parties can potentially go into debt and suffer significant financial loss from the costs associated with a divorce. Having a prenup saves time and money.
Reduce Stress
Divorce is stressful, not just because of the financial aspects involved, the ending of a relationship can take a significant emotional toll on each person. When you have a prenup it removes some of the stress surrounding the divorce. Everything included in the prenup can be carried out making certain both people are treated fairly.
Final Thoughts
None of us enter into a relationship expecting to divorce but it happens. A prenup protects both parties. Each person should hire their own attorney to represent them, choose an attorney that specializes in divorce or family law.
The Tech Minimalist 