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A prenuptial agreement: Insurance for your marriage

On Behalf of | Mar 27, 2023 | Divorce

Nobody knows what the future will bring, and it is essential to prepare for challenges, even if you hope the future will be bright. Just like you insure your car or home to prepare for future challenges and losses, you can prepare for future difficulties in your marriage through a prenuptial agreement.

Your prenuptial agreement can act as insurance for your premarital and marital assets?

A prenuptial agreement can protect your financial health in many ways.

One way that a prenuptial agreement protects your financial health is by protecting your income. When your income exceeds your spouse’s, you might find yourself paying spousal support if your marriage ends. However, a prenuptial agreement allows you and your spouse to determine whether you want spousal support to be part of your life and identify a fair amount.

A prenuptial agreement can also protect essential assets that you owned before your wedding day. While issues like commingling may endanger your home, business or inheritance, a prenuptial agreement can limit that impact and protect your valuable possessions. An agreement can also protect sentimental items like family heirlooms.

A prenuptial agreement can also reduce the amount of marital assets spent on litigation over the assets leaving more assets available for the parties.

A prenuptial agreement can build greater confidence in your relationship.

Every marriage faces challenges, and many of those challenges involve money. The process of creating a prenuptial agreement can help you and your spouse learn more about what each of you values and how to talk about money in the future.  It also allows you to make arrangements for supporting each other should a divorce ensue at a time when you care and love each other the most, rather than trying to resolve the issues at a time when you distrust and maybe even dislike each other.

A prenuptial agreement may also help you face future decisions with greater confidence. When you know that your financial health has the protection it needs, you can make investments in your household without worrying whether you will damage your individual financial health.

While creating a prenuptial agreement can be daunting for many couples, it may also provide them with the protection they need in future challenges.