When planning a wedding, most couples do not consider a prenuptial agreement. Indeed, many couples have no need to do so.
When significant assets are at stake, however, a prenuptial agreement might be appropriate. There are several circumstances in which you should consider a prenuptial agreement, also known as a matrimonial agreement.
You own a business
When you own a business or part of a business before getting married, it starts out as your separate property. However, over time, your business might become commingled with marital assets, meaning your spouse might have a right to part of the business in a divorce. With a prenuptial agreement, you can keep your business separate.
You have debt
If you enter the marriage with considerable debt, a prenuptial agreement can protect your spouse from becoming responsible for your debt. A prenuptial agreement can set guidelines for each spouse’s financial responsibilities during the marriage.
You have children from a previous marriage
Remarriage can affect your children from your previous relationship, not just emotionally, but financially as well. You may still want to leave your estate to your children, especially if you remarried later in life. Consider drafting a prenuptial agreement to ensure that, in the event that you die before your spouse, your estate goes to your children and not your spouse.
Marriage is a financial relationship that requires careful consideration and planning. For couples with significant assets, children from previous marriages or concerns about the future, a prenuptial agreement can provide clarity and peace of mind.