6 Reasons Everyone Needs a Prenup — Not Just the Wealthy
Written by
Cynthia Measom
Edited by
Amen Oyiboke
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A prenuptial agreement might sound like something only wealthy people need, but it’s actually a beneficial financial tool that everyone can gain from. Marriage can change your financial situation in ways you don’t expect, including inheritances, prior debt you didn’t realize your partner had, or financial obligations that arise over time.
With a prenup in place, however, you can set clear terms for how these assets and liabilities will be handled, lowering the risk of legal issues if a divorce occurs.
Financial Circumstances May Change
Morgan Mazor, partner at New York-based Bender & Crane, a female-owned boutique law firm, said many couples enter marriage without thinking about how their financial circumstances may change over time.
“While they may not have significant assets at the outset, future inheritances, career growth and rising income potential can greatly impact their financial landscape,” she explained. “Without a prenuptial agreement, these unforeseen assets and earnings may become entangled in legal disputes in the event of a divorce.”
It Serves as a Practical Step in Financial Planning
“A prenuptial agreement is not a plan for divorce but rather a financial planning tool that provides clarity and protection, much like a will is not a plan for death but a means of preparing for the future,” said Mazor.
She explained that a prenup can help prevent conflicts during a divorce by settling financial matters upfront, making the process less contentious and easier to resolve. As views on marriage continue to shift, she said, more people see prenups as a smart financial planning tool rather than a sign that a marriage won’t last.
It Encourages Communication About Finances
Mazor explained that a prenuptial agreement helps couples have important discussions about their finances, including their current situation and how they expect to handle financial responsibilities in marriage.
“These discussions, though often uncomfortable, are crucial in fostering transparency and alignment between partners,” she explained. “Many couples avoid these topics before the wedding, but failing to establish financial harmony can lead to significant conflicts down the road, sometimes even resulting in divorce. By addressing financial expectations upfront, a prenup helps set a strong foundation for a stable and well-prepared partnership.”
Each Partner’s Debt Is Disclosed Up Front
“A prenuptial agreement enables couples to clearly define and allocate responsibility for student loans, credit card debt and other existing or future liabilities,” said Mazor.
It’s More Reliable Than a Postnuptial Agreement
Mazor noted that since some states don’t recognize postnuptial agreements, a prenuptial agreement is often the more dependable choice for couples looking for legal and financial clarity.
“Additionally, once married, couples may find it more challenging to shift their focus from daily life to negotiating a financial agreement,” she said. “Addressing these matters before marriage ensures both parties enter the union with clear expectations, reducing potential stress and conflict later on.”
It Can Allow Couples To Waive Spousal Inheritance Rights
“Marriage grants spouses specific estate rights, which can impact inheritance planning, especially for those with children from previous relationships,” Mazor explained. “In states like New York, the law allows individuals to disinherit their children but not their spouse. However, a prenuptial agreement enables couples to proactively waive spousal inheritance rights, ensuring that a larger portion of their estate is preserved for their children. By setting clear legal and financial expectations, a prenup provides peace of mind and protects the best interests of both the spouse and their children.”
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