Prenuptial agreements may not seem appealing when you're considering getting married, but even though they may not feel romantic, they can be a way to protect yourself and your soon-to-be spouse. These agreements work in both parties' favor, which is why it's important to consider one before marriage.
What's the benefit of a prenuptial agreement?
With a prenuptial agreement, you're not saying you don't trust your loved one. Instead, you're saying you both should go into marriage knowing everything about your finances (including your debts and assets). By working through a prenuptial agreement, you can decide on the way finances will work in your marriage. You can even determine things like alimony or divorce terms ahead of time, even if you never need to use them.
How many people have prenuptial agreements?
According to a study from 2002 and a report from 2010, around 3 percent of all couples, either spouses or fiances, have prenuptial agreements. That number is increasing over time, because the agreement can help sort out financial issues before they ever become a problem. For instance, if you receive an inheritance, do you want it to go to your ex-husband or ex-wife in the case of a divorce? If not, you can spell that out now. If you want that money to go to your children, both you and your spouse can sign the agreement to say so.
What can you do if you don't have a prenuptial agreement?
If you're still married, you may want to consider a post-nuptial agreement. It's similar to a prenuptial agreement, except for you create it following your marriage. Either of these documents can be drafted by your attorney.
Source: USA Today, "Prenuptial agreements: Unromantic, but important," Laura Petrecca, accessed Dec. 23, 2015