Though prenuptial agreements held something of a complex reputation in the past, more people have come to view it as a crucial asset and an important part of going into marriage.
However, it is up to every individual to understand the potential benefits and downsides before going this route. After all, all couples have differences and what works well for one might not work out for all.
Protecting against debts
Money Talks News discusses some of the numerous benefits associated with prenuptial agreements, also called prenups. For one, it protects you against any debts your spouse may have. If your spouse brings their debt into the marriage, you could end up having to pay some of it off in the event that you separate. Prenups can help avoid this.
Protecting your assets
It protects the assets you bring into a marriage, too. Items that you designate as separate from marital property in a prenup agreement keeps them out of the asset division process. This way, you can protect things like antiques, sentimental objects and items of high value like property.
It also protects your children you may have from past relationships. You likely want to ensure they have access to your assets and inclusion in your estate plan, and a prenup can ensure this.
The biggest con for many is the fact that prenups still carry a stigma around them. Many people feel like it is “bad luck” or preemptively admitting that a relationship may fail to get a prenup. In reality, it is simply a smart financial move that can save you a lot of trouble and heartache later down the road if worse comes to worst. It is good planning for a worst-case scenario.