When Is It Right to Have a Prenuptial Agreement?

First and foremost, congratulations on your impending nuptials! Before you go happily riding off into the future together, however, there are a number of not particularly fun, but necessary measures you’ll need to take and decisions you’ll need to make before that life-changing walk down that aisle. One of those decisions may be whether or not to have a prenuptial agreement (often called a “prenup”), or a written contract signed before marriage that takes into account matters such as property, debts, inheritances and children from previous marriages, among others.

 Do You Need a Prenup?

 There are a number of considerations that go into deciding whether to draw up a prenup. Take a look at the following questions. If you or your betrothed answer “yes” to even one of them, you’ll probably want to give a prenuptial agreement some serious consideration.

• Do you have real estate assets?
• Are you a full or part business owner?
• Do you make more than $100,000 annually?
• Do either of you plan to support the other while one furthers their education?
• Do you currently have an estate than names someone other than your fiancé?
• Do you or your fiancé have employment benefits such as profit-sharing?

While falling into one of the above categories doesn’t automatically mean you need a prenup, it does mean that you should delve a bit deeper into finding out about exactly what’s at stake once you’re legally married.

The Benefits

 If you reviewed the above list and think a prenuptial agreement may be right for you, you’ll be happy to know there are a number of benefits that come with having one drawn up. With a prenup in place, you and your spouse can determine from the outset what should be considered community (i.e., joint) property and what will be considered separate, and can also establish guidelines for matters such as who is financially responsible for any preexisting or future debts, or the costs of children from the former marriage. Essentially, creating a prenup helps you and your future spouse make any number of related determinations that can keep you out of court (and save you a lot of money and stress) in the unfortunate event that the marriage sours somewhere down the line.

While requesting that your bride or husband-to-be sign a prenuptial agreement can prove awkward and uncomfortable, it may ultimately be a small price to pay if you one day find yourselves engaged in a contentious court battle. When done right, a prenuptial agreement can set the guidelines you and your fiancé need to confidently enter a marriage based exclusively on the love you share.