While managing the future of your financial assets may not be high on your list as you plan your big day, if you have children, pre-wedding is a smart time to revisit your estate plan. Whether your kids are still minors or independent adults, a prenuptial agreement is essential if you want to be certain that they receive the financial support you intend them to, whatever the next chapter of your life brings.
In previous decades, prenuptial agreements were often either associated with the very wealthy or else dismissed as unromantic or even greedy. However, more recently, this important estate planning tool has become popular among a wide range of individuals, from millennials to older couples who marry or remarry later in life. Business Insider reports that attorneys saw prenup requests increase by 62% between 2013 and 2016.
What may a prenup include?
While you may have already established a trust, a prenuptial agreement may add an extra layer of protection for divorce or death. In addition to making financial provisions for your children, a prenup may include directions for the division of many kinds of assets, from personal belongings to a family business. The document may also cover other items, such as protections against a spouse’s debt, divisions between separate and shared property or even directives to keep family property in the family.
Foundations for a stronger marriage
Whether marrying for the first time or fifth, many couples are hesitant to discuss finances with their spouse-to-be. Unfortunately, money issues are also at the top of the list of reasons that people ultimately divorce. While discussing finances is hardly romantic, a prenuptial agreement may have benefits beyond protecting you and your partner financially. A recent article in Forbes points out that the process of creating a prenup may actually strengthen a new marriage by fostering frank communication about a topic many avoid before it is too late.