How a prenuptial agreement will cover you when your marriage falls apart

Among millennials, prenuptial agreement or prenups are becoming more common. For various reasons, prenups are worth considering especially if one partner has more assets than the other, one or both partners have investments, or if you plan to have a family. Should you be signing too?

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Prenup

A prenup is a legally binding contract that determines how spouses will divide assets and debts in the event of a divorce. Prenups are no longer reserved for the wealthy and famous or those marrying multiple times. Australians marrying later in life with more assets to protect and millennials who fear divorce look to prenups as a source of protection.

Are you curious about whether a prenup is right for you or if you’re considering signing your fiancé’s proposed prenup? If you do, it’s helpful to consider the pros and cons of a premarital agreement.

Discussing about prenup with your partner may seem daunting, but having a good communication with your partner is important especially when talking about wealth. It may sound scary but being open and honest about property, finances, and each of your expectations before the wedding may be one of the most beneficial aspects of the process.

The largest advantage of a prenup is that the couple, not the court, decides what happens in the event of a divorce. Without a prenup, the laws of the state determine what will happen to your future should you and your spouse split.

Prenups are ideal for couples with one partner having more assets at stake than the other. This is especially true if you own real property or other high-value assets, or plan to acquire any during the marriage.

Another reason for having a prenup is when one or both partners have investments or plan to invest, especially for long-term investments. If you have or plan to have any investment or retirement accounts or if you have vesting opportunities or stock options from your employer, it’s time to consider a prenup.

Read more: https://www.perthnow.com.au/lifestyle/personal-finance/how-a-prenuptial-agreement-will-cover-you-when-your-marriage-falls-apart-ng-9aa0ff72d9fd2e5dcfa8d039d645d2ae