Although a prenup may be a difficult subject to address, it is an important aspect of marriage that should be considered before tying the knot. Research has shown that nearly half of all marriages will end in divorce and one of the leading causes is finances. For marriages to last, couples need to be on the same page with handling their finances and a prenuptial agreement can help.
If any of the following are true for your and/or your future spouse, then you should consider a prenuptial agreement.
Prenups are not only used in the event of a divorce but also in the event of a spouse’s passing. A prenup can protect the inheritance of your children from a prior relationship by detailing how you want to have your estate distributed amongst all of your children. Florida laws do not protect the inheritance rights of stepchildren, so a prenup can also enable you or your future spouse to specify benefits for any stepchildren.
If you own your own business (whether from before meeting your fiancé or while you began dating) or you will be inheriting some or all of a family business, a prenup can help protect the business from your spouse if they attempt to make a claim for ownership during divorce proceedings. A prenup can also set guidelines for the income that stems from the business, especially if it is the main source of income for your family.
Being a stay at home parent is a full-time job without pay or benefits, so a prenuptial agreement can establish how much support and for how long the income-earning spouse is responsible for providing support in the event of a divorce.
Whether its school loans or a shopping addiction, one spouse may enter the marriage with a significant more amount of debt than the other. A prenuptial agreement can help protect the other spouse from having to continue to pay off a debt that they didn’t rack up themselves. On the reverse side, one spouse may have a significant amount in savings stashed away that they set aside prior to meeting their spouse. A prenup could help protect those funds during divorce proceedings.
If you know you will be receiving a large inheritance, including it in a prenuptial agreement can help protect it should you ever use the funds on community property during your marriage, like the purchase of a house.
Source: How common is divorce and what are the reasons? accessed Dec 03, 2016
Cheat Sheet, “Marriage: 5 Signs You Need a Prenuptial Agreement,” Megan Elliott, accessed Dec. 02, 2016