When most people think of prenuptial agreements, they believe these pacts benefit one party and disadvantage another.
According to a report in Axios, 50% of adults in the U.S. say they, to some extent, support the implementation of prenuptial agreements. The report cites a Harris Poll survey from September 2023 that was done on behalf of Axios that says only 20% of married couples--that's one in five--actually have such a pact in place.
While some believe that the only reason to have a prenup is when one party makes a lot more or has a much higher net worth than the other, that's not true. There doesn't have an income disparity to warrant entering into such an agreement. And, as you'll see, there are four good reasons why a prenup can benefit both parties.
- Protects Individual Assets
One reason a prenup is a good idea for both parties entering a relationship is that it safeguards individual assets--assets that each party brings into the relationship. That means property, personal assets, savings, and other things. You can ensure, through a prenup, that each party will leave with whatever they entered the relationship with should separation or divorce be in play. Going this route can ensure that the divorce process isn't any more acrimonious than it may already be. As long as you get a prenup written up by an experienced lawyer and signed by both parties of the marriage without duress, odds are not even a legal challenge will thwart the prenup.
- Clarifies Financial Responsibilities
Another reason a prenup benefits both parties rather than one over the other is that it clarifies financial duties. When everything is going great, it's easy to steer clear of these types of discussions. However, when everything's going well, it's best to sit down and iron out what will happen should the relationship end, rather than wait until the things hit the fan, and you have to iron things out when neither party is willing to give up an inch in negotiations. When pursuing a prenup, you can set out in writing who is responsible for different financial obligations during the marriage and after the marriage if there's a divorce. These financial duties can include managing debts or contributing to shared expenses.
- Protects Family Heirlooms and Inheritances
When people enter marriages, they may have family heirlooms and inheritances that they hold near and dear to them. Whether you or your significant other enter the relationship with family heirlooms and inheritances or gain them during the union, you might want to exit the marriage with whatever was gifted to you by your family.
So, if ownership in a family business was gifted to you, the last thing you'll want is to see that ownership stake in play during divorce proceedings. With a prenup agreement, you can protect yourself and your partner so that certain things remain within the intended family if the relationship breaks down.
- Ensures Fair Spousal Support Terms
Yet another reason to consider a prenup is that it will allow the two parties to agree to certain terms about fair spousal support terms. Again, it's easier to discuss these matters when the two parties are on the same page. While an uncomfortable discussion to have--who wants to head into a marriage believing it could end?--it's an important talk to have, nonetheless. Discuss things like alimony or spousal support terms so there's no question about what to do if the marriage ends.
While it might seem like bad karma to even consider the possibility of a marriage ending, it's best to hope for the best and plan for the worst. Like auto insurance, you hope you never have to use it…but you'll be glad you have it if the situation calls for it.
