Prenuptial Agreements (Premarital Contract) are like insurance policies. You do paperwork, and then hope you'll never need it. However, since half of marriages end in divorce within first seven years, you may want to consider a prenuptial agreement before you walk down aisle and say, "I do."
Since you could later be engaged in a nasty, costly, and emotionally draining divorce some day, you should consider a prenuptial agreement as a precaution. Below we have given you some information on what is in a prenuptial agreement and whether it could be useful for you.
A prenuptial or ante nuptial agreement is a document signed by two people who intend to be married. It describes their rights and obligations should they get divorced. A prenuptial agreement informs court how they want their assets and property divided up.
Divorces become messy when parties cannot agree on distribution of property, such things as house, house, stocks, and bonds and whether one party should pay other alimony, now known as "maintenance" in most states. Assume that husband has $1,000,000 in his own name prior to marriage. A properly drafted prenuptial agreement can award that same $1,000,000 to him after a divorce, notwithstanding what he does with money, such as purchasing a home in joint tenancy or shifting money into other accounts. Without a prenuptial agreement, wife might be entitled to one-half of $1,000,000 or more, depending on financial circumstances of parties at time of divorce. The prenuptial agreement is a powerful and valuable tool that can favor husband, protect wife, or serve both of them fairly. It is a question of circumstances and intentions.
Candidates for prenuptial agreements used to be just older individuals with huge estates that they wanted to protect from gold diggers for their children from previous marriages. Since more millionaires are born every day, candidate pool is growing by leaps and bounds. Now everybody has something to protect: an unpublished author, budding inventor, anybody with a lucrative profession or a good idea. So, before you dismiss idea of a prenuptial agreement, assess your situation in life and your long-term future in deciding whether a prenuptial agreement is right for you.
Consider at length nature and extent of your present and possible future assets. A prenuptial agreement can be a very simple document running only a few pages that segregates each party's assets owned before marriage, or it can be a very complicated document that runs dozens of pages because it deals with income and assets acquired during marriage, payment of debts, attorneys' fees, alimony/maintenance, and other financial matters. The next hurdle is raising issue with your intended spouse, a very unromantic event. It helps to get it over with early. Perhaps you could blame it on someone else, such as your parents who may want to involve you in a family business, or possible business partners.