Why Engaged Couples Should Sign A Prenup

www.bankrate.com:

Although prenuptial agreements are often associated with celebrity couples -- and their headline-generating divorces -- they're not just for boldface names.

Any couple who brings personal or business assets to the marriage can benefit from a prenup. The most basic of these contracts lists an inventory of premarital assets that in the event of a divorce will remain the property of their original owner.

Read the whole story: www.bankrate.com

Comments

[Mandles99]

01:50 PM on 08/22/2011

Do pre-nups undermine the idea of trust?

[shann115]

04:48 PM on 08/21/2011

redrat - be careful with the assumptions. I did the cleaning and came home each night to work "second shift" and do the child care. The ex had other interests besides "supporting me".

[peegan]

12:06 AM on 08/21/2011

All marriages come with a prenup of sorts. It is your decision whether you let the state write it through the courts when they divide up your assets, or if you write it. May I suggest the latter. Not only will it give you more control over your property, but it is a great launching board for discussions that should be had before you marry. How will you handle the finances, will both parties work after children. What if one party needs to relocate for work, retirement planning, etc. 

A marriage licence does not mean you will be married forever, a prenup does not mean you already have one foot out the door. It is a road map. Detours allowed.

[RedRat]

04:14 PM on 08/21/2011

Well put.

[RedRat]

08:02 PM on 08/20/2011

Not an entirely bad idea at all. At least it recognizes the existential fact that the majority of marriages end in divorce or a parting of the ways. This way, you prepare for the worst and hope for the best. That someday the surviving spouse on the deathbed will be able to tear the document up.

The reality is that marriages do fail and if you can avoid the rancor, especially over commonly shared goods, that prenup can save a lot of grief for both parties. I say go for it.

[shann115]

06:16 AM on 08/20/2011

A pre-nup cannot predict and prevent all that can result in exploitation of the "higher-earning" spouse. Sometimes, both can start out in life on an equal basis. Then, a decade or so later - one is more financially successful than ever expected while the other refuses to contribute financially or help around the house. In lifetime/long-term alimony states, the "lesser-earning" spouse is now eligible for 1/2 of the assets, AND alimony awards that over time would equal up to 3 times the value of the marital estate, not 1/2. The payout is just like winning megabucks or massmillions at the lottery. The odds of winning at Massachusetts probate court is almost certain, while the lottery is far more chancy. The lesser-earning spouse gets 1/2 the martial estate, a megabucks jackpot and the freedom to do whatever they want in life, free of financial responsibility. Who wouldn't want to divorce for this?

[RedRat]

04:21 PM on 08/21/2011

Well this of course assumes that the one spouse did not offer any support for the high earning spouse, encouragement, putting up with long nights without the other, etc, etc. There are contributions to the success of the other that cannot always be measured in terms of dollars or hours spent doing the unseen dirty work of running a household.

Perhaps what needs to be seen here, and probably impossible to do, is that if the one spouse is seeing that he or she is successful and the other is not, then because of this wide chasm in wealth generation, get out of the marriage early, cut your losses early. Sounds heartless and cruel? Yup. But if you are only going to look at it from a purely business or economic side, then dump your partner. After all, it is just business.

I suspect that probate courts do look at the contribution of the "under performing" spouse as contributing something to the wealth of the estate, e.g., keeping it clean, raising the kids, whatever. That is why they go half the estate.

[capella8888]

04:14 AM on 08/20/2011

Prenup os helpful and should be done at all times. ~ Capella Campomayor

[imhappy]

02:47 AM on 08/20/2011

I strongly suggest a pre-nup especially if either or both parties are getting into a marriage with significant assets and more so if there are children from previous marriages whose interests have to be protected. Then stipulate no less than the what would otherwise be stipulated in a community property jurisdiction.

[RedRat]

04:15 PM on 08/21/2011

Absolutely right on.