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What are the pros and cons of a prenuptial agreement?

It can be difficult to think of your marriage as a business relationship, but when you stop to think about the financial interests in your marriage, it makes it easier. As a business relationship, you need to protect your assets and investments. One way to do so when you will soon be walking down the aisle is to create a prenuptial agreement.

A prenuptial or premarital agreement is a legal document that both parties sign that protects each person's assets. However, there are pros and cons to the agreement, which you can read below.


-- If you own a business, a prenuptial agreement can be used to protect that business from becoming marital property during a divorce.

-- A prenuptial agreement can be used to protect your children's or grandchildren's inheritance rights.

-- It can protect a debt-free spouse from incurring debt from the other spouse.

-- It can limit the amount of alimony that one spouse has to pay to the other.


-- A prenuptial agreement can require that you give up rights to your spouse's estate upon his or her death. However, the law says you are entitled to part of the estate even if such a provision is not included in his or her will.

-- During your marriage, you maybe paramount to the success of your spouse's business. If it is in the premarital agreement that you cannot claim part of an increase in the business' value, then you may not receive your share of the increase.

-- A lack of trust may grow when you realize that the particulars of the prenuptial agreement do not benefit you.

-- You may sign the premarital agreement even if it isn't in your best interests simply because you are too in love to say no.

These are just a few of the pros and cons of a prenuptial agreement. It is important to have your own attorney review the provisions of a prenup to make sure that your interests are not being pushed to the side. An attorney can help you draft an agreement that is fair and will stand up in court.

Source: FindLaw, "Pros and Cons: Premarital Agreements ("Prenuptials")," accessed May 05, 2017

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