I do or do not want a prenuptial agreement . . . 5 reasons you may want a prenuptial agreement.

The prenuptial agreement is a rule book for you and your spouse in the event your marriage doesn’t work out.   

Given the statistics, a prenuptial agreement is a smart move. You can increase your chance of success of a lasting marriage with a marriage counselor and clear communication.

Here are my favorite 5 benefits of a prenuptial agreement.

  1. Forces the money conversation with your fiancé.

According to Forbes, 37% of couples divorced due to financial problems. The top contenders were lack of commitment (75%), infidelity or extramarital affairs (60%) and getting married too young (45%). A prenuptial agreement cannot address the top three contenders, but it can certainly assist with the financial problems.

Before you get married, whether or not you sign a prenuptial agreement, you should make sure you are financially on the same page with your fiancé. The prenuptial agreement is an excellent pretense to discuss spending habits, long-term goals and emergency savings if you’re having difficulty discussing these topics.  If you are a saver and your fiancé is a spender, marital friction and an ugly divorce is practically guaranteed.

  2. Makes you plan for the future in terms of your own money situation.

In negotiating a prenuptial agreement, you’ll need to analyze whether or not, in the event of a divorce, you’ll be able to provide for yourself according to the terms of the prenuptial agreement. For example, if you plan to be a stay-at-home mom, the prenuptial agreement needs to provide you with sufficient assets and payments to get you back on your feet, make up for lost personal savings and make up for lost retirement account savings. By contrast, if you plan on being the breadwinner, you need to make sure you have sufficient income and resources to provide for the stay-at-home parent if that’s the intention and the marriage fails.

  3. Makes you plan for the future with your fiancé.

Assuming you and your fiancé want to purchase a home, you need to put a game plan into place to save for the down payment and have enough earnings to pay the monthly mortgage. Now is a good time to have a conversation about where the new home may be located, the budget for the new home, and how to logistically purchase the new home. There will be guaranteed friction if your future spouse wants a grand home and expects you to make solely make it happen for any number of reasons.

  4. Can create clarity where the law is less than clear.

The law is clear as mud in certain situations. Any property acquired during the marriage is subject to division between the spouses except in certain situations. With a prenuptial agreement, you can create your own rules as to which property is to be shared and which property is not to be shared. Even if you don’t sign a prenuptial agreement, you really should talk to an attorney. 

There are certain ways to protect your assets, such as investment account, or lose your assets, such as an inheritance, if you are not being smart in how you make financial decisions.

  5. Should simply the divorce process; which leads to less stress, less legal fees and less confusion.

It’s better to figure out the rules now when there is less at stake. If you wait until the rule application determines who gets what, then each side will want the rule written in his or her favor.

Even if you don’t want a prenuptial agreement, I cannot recommend strongly enough that you consult with an attorney so that you make smart money moves during your marriage just in case . . .

​