Prenuptial Agreements Are Good for The Rich and The Poor
The topic of prenuptial agreements has always been somewhat of a, let’s just say, sticky topic. No matter who brings up the idea of signing a prenup, you can be sure that there a million thoughts running through the other person’s head (and they’re rarely positive ones). But before you get offended and get upset when she/he asks for you to sign a prenup, let’s consider the factors where a prenup is logical and within the best interest of both parties.
Prenuptials for the Rich and Poor:
There is a misconception that prenuptials were made to protect the assets of millionaires and billionaires. The majority of people in the world are not millionaires or billionaires, yet more and more people are signing prenups, so why is that?
Prenuptial agreements can be beneficial for both the poor, the middle class and the rich, and here are the reasons why you might want take a second look at getting one:
- You may not be rolling in a field of greens, but you have huge assets such as property investments, stocks, bonds and retirement funds.
- You come from a somewhat wealthy family and you anticipate getting a nice, “dainty” inheritance from dear grandmama.
- You made an investment some time ago and is now part owner or an owner of a business. A prenuptial agreement will ensure that you have all the rights to your own business. If you do end up divorcing without a prenup, you may have to give your ex-spouse part of your business.
- You are a loving child and plan on taking care of your own parents as they age.
- You have outstanding loans under your name, or your spouse to be has outstanding loans. By signing a prenup, you are ensuring that your partner’s debt will not fall under your responsibility, and vice versa.
- You are entering your 2nd, 3rd, 4th+ marriage. The legal and financial matters are going to be very different for any marriage after your first one. When entering another marriage, you have to consider assets from the previous marriage, child support, alimony to previous spouse and so forth. By signing a prenup agreement, you have control on how to fairly distribute your assets when you pass.
***The information provided above is not intended as legal advice. For more detailed information on prenuptial agreements, divorce matters, or any other legal matter, please consult a lawyer near you.