What is a Prenup?
A Prenup is also known as prenuptial agreement. A Prenup may sound very cold and unromantic but it is also a considerate and practical way to decide before the marriage, certain issues having to do with your money.
Prenup is in Existence since 1848
It is interesting to note that the custom of creating a prenup is not the modern invention that it seems to be. During the 19th century, before the Married Women's Property Act of 1848, a prenup were necessary for women in the United States. Until the act became law, everything a woman owned or inherited was transferred to her husband. If he died or divorced her, she was just out of luck.
Prenup is common today
And these are not just for the famous super-rich couples we read about, where one spouse is much richer than the other. These are couples who want to be upfront about financial issues and get that out of the way before the wedding.
Why Sign a Prenup?
A prenup is a signed and notarized contract that describes how a couple will handle the financial aspects of their marriage. The prenup has many positive benefits that are not related to divorce, and although it is not very romantic, it has many positive elements.
- If a future spouse won't sign a prenuptial, it may be best to discover this before the wedding. The financial well-being of children from a previous marriage can be protected.
- Personal and business assets accumulated before the marriage are protected by a prenup.
- A Prenup reveals financial expectations before the wedding.
- A Prenup discloses assets a spouse may want to give to children or other family members in the event of death.
- In the event of a divorce, the prenup eliminates battles over assets and finances.
- Signing a prenup does not mean that a couple is anticipating divorce.
- Prenups address financial matters need to be faced.
- A well-constructed prenup agreement can preserve family ties and inheritance.
Despite its many positive features,
a prenup cannot accomplish everything.
- A prenup agreement may be considered unromantic.
- A prenup agreement may give the appearance of a lack of trust between the partners. It is true that a prenup could create resentment between certain spouses.
- Certain requirements exist so that the prenup agreement cannot be declared invalid. These include failure to disclose all assets, evidence of fraud, forcing the agreement upon the other spouse, unfairness, and lack of representation at the time of signing the agreement.
Considering a Prenup?
Now that you know what is a prenup and its pros and cons, it is important not to wait until the last minute to talk about financial matters. Discuss the agreement early in the relationship. Don’t try to hide your thoughts, feelings, and especially your assets.
