Residents of Fort Worth, Texas, and Tarrant, Texas, may ask themselves who premarital contracts, also known as prenuptial agreements and prenups, are good for. The answer is everybody. Although classically associated with rich older men who marry pretty younger women, prenups are good even for young couples who marry at a point in their lives when they have only a minimum of material assets.
One good reason is that getting a prenups acknowledges that divorce is in fact something that happens, and should be realistically prepared for, much like acknowledging that traffic accidents happen and using that knowledge as a basis for safety-enhancing decisions like wearing seat belts. Additionally, prenups get the couple to discuss their finances at the beginning of their marriage, coming to mutual understandings about both what they have at that time and what their long-term plans are.
Prenups also unveil what each member of the couple views as fair in regards to current and future assets. That may be a tough discussion, but it is also one that only gets tougher each day it is delayed, so they might as well get it started as soon as the couple is engaged.
If the marriage ends sooner than expected, a prenup can ensure that the divorce is not a painfully prolonged battle, and instead, is a peaceful process with all matters resolved as agreed to by both members of the couple in accordance with the terms of their prenup.
Another benefit of the prenup is that it establishes to whom debt belongs. You may love your partner dearly, yet not be enamored at all of the prospect of being saddled with his or her debts. Addressing that in the prenup alleviates concerns related to debt, and allows both partners to move forward responsible for their own past decisions that resulted in debt.
When putting together a prenup, it helps to look it as financial planning that will help you and your partner have a smooth life together.
Source: Money, “Why You Should Get a Prenup Even If You’re Young and Broke,” Erin Lowry, accessed Jan. 17, 2018