Do you need a prenuptial agreement?

On first impressions the idea of applying something as callously pragmatic as a prenuptial agreement to your wedding and future marriage may seem unfathomable. How can you consider signing a document which implies your marriage may not last? Try to get past this notion and don’t angrily drag your mouse pointer towards that little cross in the top corner of your screen just yet! Read on to get the lowdown on prenuptial agreements and decide whether a prenup is right for you...

What is a prenuptial agreement?

A prenuptial (aka ante-nuptial agreement or premarital agreement) is a simple premise. In theory, it states that the goods, assets and property owned by individuals before the marriage will remain the property of the respective parties in the event of a divorce or separation. It will also lay down an agreement on what will happen to any assets acquired during the course of the marriage.

Considerations for a prenuptial agreement

Prenups are on the face of things pretty self-explanatory. If you are entering a marriage with vastly different assets than your wife or husband-to-be, it would make sense to at least take some legal advice on how to protect them. In a perfect world marriage would last forever, but of course that is not always the case and a large proportion of marriages do not stand the test of time.

Another thing you have to consider when mulling over the pros and cons of a pre-marital agreement is children. If you already have children from a previous relationship then a prenuptial contract can help guarantee that your assets remain yours for the children’s future. Alternatively, consider that any future children you may have with your spouse could affect the terms of the prenuptial.

Broken down, a prenup gives you and your partner the chance to calmly and fairly decide on what will happen to assets in the event of marital break down while the parties involved are still … well, sensitive to each other’s feelings.

How legally enforceable is a prenup?

The problem with prenuptial agreements in the US is that although they are recognized in all 50 states the legal precedent for the enforcement of a prenuptial really depends on the terms and the document is worth nothing if the divorce court decides they are unfair or ambiguous.

Essentially a prenup does not guarantee anything, they can be a powerful means of laying out the terms for division of assets and can dictate the terms for any future alimony but they are not the final word. Do not make the mistake of thinking they are totally legally binding.

To ensure the validity of the agreement both parties should have lawyers present at the signing. This will strengthen the agreement in the event it is called into use. In some extreme cases lawyers will even recommend the signing of the agreement be taped or that each party retaining an independent judge to oversee the particulars.

Final thought

All in all, the decision on whether or not you need to look into getting a prenuptial agreement can be complicated one. We would advise that you take emotions out of the picture and view it as rationally as possible. Really, unless you’re rich and your spouse intends to quit their job after the wedding you probably don’t need one!