What is a prenuptial agreement?
This agreement outlines the couple's current and future financial responsibilities, including what is to happen if they are to separate, divorce, or pass away. Financial topics include property, debt, inheritances, savings, investments, business ownership, retirement benefits, and alimony. Couples considering a prenuptial agreement should collaborate together on the document to ensure both parties are well represented and protected.
What are the pros and cons of prenuptial agreements?
As with any legal decision, there are pros and cons you should share with your clients who are considering creating a prenuptial agreement. Let's begin with the pros. Your clients should think of a prenuptial agreement as an insurance policy for their marriage. They hope the worst won't happen, but a prenuptial agreement provides ease of mind just in case something goes awry. If a client is about to go into their second or third marriage, a prenuptial agreement can help them navigate a complicated financial situation. As far as cons go, you should make your clients aware that they may run into some initial discourse with their fiancé as they develop their prenup. You can assist clients if this problem arises by working as a mediator. Another con to make clients aware of is how much a prenuptial agreement may affect their financial standing, since it could limit the amount they receive from an estate or inheritance.