Pros and Cons of Prenuptial Agreements
Premarital or prenuptial agreements have a reputation for being something negative and foreshadowing divorce, but many times, a couple may choose to enter into a ‘prenup’ to avoid burdening their partner with debt or to maintain previously-made arrangements with others. There are a few reasons why prenuptial agreements may be right for you and there are a few downsides.
One of the upsides to having a prenuptial agreement is it forces each partner to look at his or her finances. Prenuptials cut through the verbal promises and assumed expectations, laying out each partner’s specific intentions for the marriage. They can protect the inheritance rights of offspring from other marriage. They allow business owners to protect their business from being split up due to divorce. If the marriage requires one of the parties to quit his or her job, a prenup can make sure they are compensated for the trouble should the marriage dissolve. A debt-encumbered future spouse can protect their future partner with a prenuptial agreement. Finally, prenups eradicate some if not all conflicts during divorce proceedings should the relationship sour.
There are a few downsides of entering a prenuptial agreement. The contract may require one to lose out on assets normally acquired from their partner if he or she dies. They can cause resentment or an air of distrust. If one engages heavily in helping their partner’s business succeed, they may end up undercompensated. Blinded by love, some may agree to terms they really shouldn’t have only to realize their error after it is too late. They can be invalidated if a party forgets to mention some of their assets (the house in Guam you won in a poker game 14 years ago and have never been to). Prenuptial agreements can give off a sense that one does not expect the union to last a lifetime. Lastly, having your partner sign one does not send a romantic message.
Although there are definite downsides to having one, prenuptial agreements may be necessary. Ex-spouses may depend heavily on promises you have made. Ensuring that these are kept can sometimes be more important than your current partner’s objections to a prenup. Make sure to consult with your lawyer or lawyers on your legal rights.










