Posted in Prenuptial Agreements
You found “The One,” you got the ring, and now you’re wondering, “Do I need a prenup?” While it might not seem like the most fun part of planning a wedding, considering whether or not a prenuptial agreement is right for you is important. You may think prenups are only for people who have significant wealth to protect, or for people who already don’t trust their partners. But a premarital agreement is actually a wise investment many happy couples make to protect themselves as individuals as well as their marriage. Here’s why…
Clear Expectations
Preparing a premarital agreement gives the couple an opportunity to discuss their views on money, their financial responsibilities, and their existing assets and debts. It can even lay out things like who will pay the mortgage or whether the couple will share a joint account. Too often couples believe they are on the same page when the reality is that they’re not. Whether partners have not had discussions about their financial situation or expectations, or those discussions were too vague (“good communication” doesn’t mean the same thing to everybody), having a written document that clearly describes expectations in advance is very useful.
Enjoy Financial Independence
With money being a significant reason for many divorces, a prenup can help prevent issues before they arise. A detailed plan for how money will be divided and spent allows each partner to enjoy their money without worrying about not meeting an expectation that hasn’t been discussed. Reducing the chance for money to cause stress to a couple goes a long way in increasing long-term happiness!
Keep Separate Property Separate
It is true that property owned by each person prior to marriage is their separate property. But as time passes and assets move around, it is actually quite easy for separate property assets to comingle with community property. And that can cause those assets to lose their separate property status. Sorting through comingled property can take significant time and money, and be difficult to prove in Court. With a prenuptial agreement, the couple can detail their separate property assets and debts so that those things remain separate throughout the marriage and beyond.
Parties Can Modify Or Waive The Standard Spousal Support Scheme
You’ve probably heard that 10 years is a milestone that affects alimony. In California, spousal support typically continues for half the life of the marriage, but once a marriage has lasted for 10 years, alimony could continue for life! While some parties may want to wait out an unhappy marriage to hit the 10-year mark, the ones earning more money are potentially more likely to leave a marriage sooner so that they don’t hit that milestone. A prenup can modify or waive the standard schedule for support, removing pressure from the couple to hit (or not hit) a 10-year milestone. With no more significance to the marriage duration, a couple may be more likely to work on their marriage, or call it quits, at the time that is best for them, without regard to some “deadline.”
Divorce Is Expensive
A premarital agreement covers expectations during a marriage, but it can also help to define expectations during a divorce. If matters are addressed ahead of time, the need and cost to retain attorneys is reduced. As is the stress of the divorce process. Of course, not all issues can be resolved in a prenup, but many can.
At Skarin Law Group, we understand how important a prenuptial agreement is to protect yourself and your assets during a marriage and a potential divorce. Having one put together does not mean you do not trust your partner or are expressing any doubt in the success of the partnership; on the contrary, having a premarital agreement can relieve much of the stress about money that so many marriages suffer from, and it might be the key to a happy and lifelong partnership with your spouse. Just be sure you keep in mind these key considerations when drafting a prenup.
