Tis the season for holiday engagements, and I want to extend my most heartfelt congratulations to those starting this new chapter of their lives. However, as special and exciting as it is to ring in the new year with a new ring, I recommend that soon-to-be-married couples do not wait too long before discussing the more practical concerns of their future.
For many couples preparing for the big day, one major consideration is prenuptial agreements, also known as a ‘prenup.’
In simple terms, a prenup is a legal contract made before marriage that outlines how assets and debts will be handled in the event of divorce or death. The primary purpose of a prenuptial agreement is to protect the individual interests of the married couple while fostering transparency and communication.
While prenups are often an important practical step in relationship planning, I often remind clients that these agreements are more than one-size-fits-all. The specifics of your prenuptial agreement will depend on your and your partner’s unique circumstances.
So, how can a couple decide whether a prenuptial agreement is right for them? Below are a few key things to keep in mind before discussing the matter further with a legal representative.
Prenuptial agreements can often get a bad reputation due to their role in some of the most publicized and contentious divorces amongst celebrities and the elite. However, it’s important to note that they’re a vital tool, despite their association with financial control and “planning for a divorce.”
In other words, some believe that prenuptial agreements are “only for the wealthy.” While yes prenups are often associated with wealth, they can be useful for various financial scenarios regardless of a couple’s financial situation.
Prenuptial agreements can also reveal the financial priorities of both partners and eliminate doubts about what may happen in the future. Drafting a prenup with your partner and a family law professional can strengthen a couple’s communication and trust before the marriage.
There are three common circumstances that typically necessitate a strong prenuptial agreement to be drafted before the wedding.
1. Second Marriages and Blended Families
2. One or Both Partners Possess Significant Individual Assets or Own a Business
3. Unequal Financial Situations Between Partners
While useful in certain situations, I may not always recommend drafting a prenuptial agreement to couples who identify with the following…
1. First Marriages with Modest Assets
2. Couples Who Are Working Toward Collaborative Financial Building
3. Couples Who Are Hesitant to Agree to Certain Terms Prematurely
While the situations listed above are a few of the most common predictors of whether a prenup is right for you, bear in mind that you and your partner may prove to be an exception.
Whatever you and your partner’s circumstances may be, I would caution against rushing into a prenup without understanding the long-term implications of the agreement, especially in first marriages where rights may inadvertently be waived.
Every relationship and financial situation is unique, and agreeing to a prenup requires thoughtful discussion, consideration of your unique situation, and legal counsel.
Due to common misconceptions about prenups and the inherent negativity associated with discussing the possible end of a marriage before it even begins, navigating the topic with your partner may prove to be a challenge.
Prioritize respect and transparency when initially discussing the possibility of a prenup with your partner. If your partner raises concerns and reservations about the process, take them seriously. As needed, remind your partner that prenuptial agreements have nothing to do with predicting the end of the marriage and primarily serve to address both of your concerns and secure your future financial goals in the event of a worst possible scenario.
Drafting a prenuptial agreement with your partner is a joint process, and both parties should always have an equal say in the matter. Prioritize the importance of mutual agreement and fairness when ironing out the details of the contract.
Above all else, I urge couples to remember that prenups are not inherently good or bad, they are simply tools to be used to address the financial matters involved in the potential end of a marriage.
For those still unsure if now is the time to explore a prenuptial agreement, I encourage you to consult with a family law attorney for a more thorough evaluation of your and your partner’s situation. Protecting your future together starts with thoughtful planning today.
At the Law Offices of Kerri Cohen, I am committed to helping my clients navigate all areas of family law during the holidays and year-round. If you are looking for a seasoned family attorney to assist you with co-parenting plans, mediation, and more, please contact my office at (410) 657-2515 or info@CohenLegalTeam.com to get started. We are here to help! Wishing you and yours a wonderful, peaceful holiday season!
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With over 20 years of experience, Kerri Cohen, a seasoned family law attorney, offers expert guidance to help you navigate this challenging process.