Blog posts tagged in prenup
Prenuptial agreements have gotten a bad rap for many years. Many hold the false belief that prenuptial agreements are only for celebrities or couples who do not believe in the longevity of their marriage. The reality is that a prenuptial agreement is a valuable legal tool as well as a great way to plan for a couple’s future. Prenups are not only a valuable tool if a marriage ends or one of the spouses passes away, but are also a good way to hammer out the details of how finances will be managed within the marriage.
Prenuptial Agreements Especially Popular with Younger Crowd
A survey conducted by the American Academy of Matrimonial Lawyers suggests that the younger generation of married couples may be more likely to use prenuptial agreements than the older generations. In fact, of the total attorneys surveyed, 51 percent reported an increase in the amount of millennials requesting prenups within the last three years.
Getting engaged to be married is a joyous time for any couple. In the midst of sharing pictures of the ring, scouting out locations for the wedding, and celebrating with friends and family, couples are also faced with a hard choice: Should they create a prenuptial agreement?
A prenuptial agreement, also called a prenup or premarital agreement, is a legally-binding agreement that a couple signs before getting married in order to protect each spouse's financial interests. Some people incorrectly assume that prenuptial agreements are only appropriate for celebrities, the extremely wealthy, and those couples who do not think their marriage will last.
Plan for the Worst
Many people are familiar with prenuptial agreements,or “prenups," and some of their pros and cons. However, what most do not know is that they can actually be quite complex and may include much more than standard asset division terms. They are also not as ironclad as popular culture paints them to be. It is imperative that before you enter into a prenuptial agreement, you should have a good understanding of exactly how they work.
What to Include and Leave Out
The are two common reasons why a couple may choose to into a prenup: to protect one spouse from the consequences of the other’s debt or to ensure that provisions are made for the children of a previous marriage. Inheritance laws in most states immediately default to a person’s children from their current marriage, so if there was a promise, for example, to save a personal item for a child of one’s first marriage, it can be advantageous to note that in a prenup. Prenuptial agreements are legally binding unless it can be proven that the agreement is unenforceable.
When it comes to prenuptial agreements, the general opinion often seems to stem from the negative stigma that anyone who pursues such an agreement must not have much faith or trust in their future spouse. Although this may actually be the case for some individuals, in most cases, this stereotype could not be farther from the truth.
Prenuptial Agreements in Today’s World
Prenuptial agreements are extremely popular nowadays, for multiple reasons. Their popularity is not merely a reflection of the state of marriages in today’s society; prenups offer practical advantages that can benefit both partners equally. Broaching the topic with your future spouse can feel uncomfortable at first, but if you both share mutual interest in pursuing a prenuptial agreement, it can prove to be a valuable, effective tool as you enter your marriage.
Many people hear the term “prenuptial agreement” and immediately think of celebrities or other famous wealthy individuals. The perception is often that such high net-worth people create prenuptial agreements in order to protect their assets and prepare themselves for an inevitable future divorce. While it is certainly true that these types of agreements can be very useful in the event of a divorce, their true strength lies in the ability to help any couple – not just the super-rich – establish security in their marriage that may even reduce the likelihood of divorce.
Marriage is a Legal Contract
While the current cultural view of marital relationships is that they are an expression of romantic love and familial commitment, the legal view is quite different. The law, of course, recognizes the familial commitment, but in the seven parts and hundreds of pages that comprise the Illinois Marriage and Dissolution of Marriage Act, there is not a single reference to or use of the word “love.” As far as the law is concerned, marriage represents a type of contract between two parties, entered willingly and without coercion. Obviously, romantic love is the basis for a vast majority of marriages in this country, and addressing the contractual aspect from the beginning can allow couples to focus on the personal side of a healthy relationship.