A prenuptial agreement may not have been on your radar the first time you got married. This may have worked out alright if you had few assets. However, your life has probably changed a great deal since then.
If you are preparing to enter a subsequent marriage, it may be wise to consider if a prenup might be appropriate for your current situation. While prenups can be valuable to almost any couple, this agreement may be especially beneficial for those entering marriage later in life.
Why is a prenup so important later in life?
Those who enter a marriage later in life may benefit the most from prenuptial agreements because they tend to have significant assets that they want to protect, such as a home, a business, retirement funds or other investments. Those entering a second marriage also tend to have children from a previous marriage that they want to provide financially for during or after the parent’s lifetime.
If you are entering a new marriage, these concerns must be juggled with your desires to provide for and build a new life with your future spouse. A prenup is a contract that a couple enters before marriage to address and help balance these competing concerns.
What does a prenup accomplish?
A prenup allows you and your future spouse to decide:
- How you will support yourselves during the marriage
- How you plan to withdraw retirement assets
- How household expenses will be divided
- What legal process will be used if divorce becomes necessary
- What will count as separate property if divorce is necessary
- What type of estate plan must be created after the marriage
- How children might be financially helped during the couple’s lifetime
Asking your future spouse to sign a prenup may seem like the least romantic action you can take. However, a prenup may encourage you and your spouse to talk through many difficult issues and find resolutions that ensure your interests and your future spouse’s interests will be protected throughout your marriage. In this way, a prenup could strengthen your relationship and resolve potential issues before they arise.