Asking your future spouse to sign a prenuptial agreement is a personal matter that may raise questions. What if the person you want to spend your life with sees your request as insulting or a sign of distrust? However, signing a prenup does not have to be negative. Not only can it protect your financial future as well as the future of your children, but it can benefit the marriage itself.
Many of the most common problems in a marriage revolve around finances. If you can take away some of those issues through a prenup, you may better set your marriage up for many years of happiness.
Here are a few ways a prenup can be an advantage for you and your soon-to-be spouse:
- Provides clarity for an estate plan so you will need less court involvement during property distribution
- Gives a place to lay out other arrangements you and your spouse decide upon, such as rules or procedures for any potential future problems
- Allows divorce proceedings to conclude quickly, with little conflict
- Puts into writing who is responsible for certain debts, especially those you accumulated before the marriage
- Allows for a clear distinction between marital property and community property
California is a community property state. This means that after two people are legally married, any property acquired, money earned and even accumulated debts become jointly owned and, in the event of a divorce, would likely be equally split between the two of you. This is another reason prenups can be beneficial in California.
If you own real estate or part of a business, have significant assets saved up, have employment benefits such as profit sharing or have named beneficiaries who are not your significant other, you may consider a prenup. Consulting a lawyer if you are not sure what to do can help you make the right decision.
Prenups can provide significant financial protection for both you and your spouse. While you may think of divorce when speaking on these matters, remember there are lasting benefits you can enjoy by taking many potential finance-related conflicts out of the relationship.