The secret to getting rich isn’t marrying rich, it’s divorcing rich.
Millennial women are walking down the aisle later in life. These high achievers are earning more than previous generations too. Because of these trends, millennial women accumulate more assets before marriage. As well, more of them are primary wage-earners in their relationships than ever before. Should these marriages end in divorce, this means making alimony payments are in their futures. Unless otherwise specified within a prenuptial agreement, the moneyed spouse may be required to make payments to their ex-spouse after divorce. A prenup can prevent that from happening, protect a business you built, ensure your assets go to your children, safeguard an inheritance, and prevent you from having to take on half of the spousal debt in the case of a divorce. Some find it unloving to discuss prenuptial agreements. That is mind-boggling to me. What does protecting yourself have to do with love?
Marriage is more than diamond rings and the promise of a long and happy life together. Marriage is also a legal and financial partnership. Nobody goes into a marriage with the expectation of getting a divorce. Still, 40 to 50 percent of marriages end that way. That said, it makes more sense to discuss the division of assets when you are head over heels in love and getting along. If you do not decide those terms beforehand, you may be fighting it out with your spouse at a time when one (or both of you) is likely to be bitter and angry. A prenup can prevent some of the resentfulness that occurs when people divide assets under stressful conditions. Here are some things to consider going into the prenup process.
Begin the discussion early.
You do not want to start the conversation about a prenuptial agreement after your wedding guests receive their invitations. Most lawyers will advise you not to wait until the last hour or agree to it to end an uncomfortable discussion. Both may lead to problems in the future. Signing under duress could compromise the validity of the agreement. Ideally, the prenuptial agreement should be negotiated and written long before the wedding date.
Negotiate fairly among yourselves.
Legal costs can easily add up quickly. Therefore, it is best to get on the same page as your partner before involving lawyers. Plus, having meaningful discussions about marriage and money can help strengthen the foundation of your relationship. And so, coming to an agreement that is fair and reasonable should be the goal. If you and your partner are struggling to do so on your own, going to a premarital counselor could help. That’s not just with issues about the prenup, but also with any other marital issues you may want to resolve before the big day.
Each side needs to have an independent lawyer.
Statutory regulations regarding prenuptial agreements require that each party be represented individually by his or her lawyer. You do not want to have your prenup thrown out of court at a later date because one person did not have a lawyer. Also, you should not have the same lawyer either. The idea behind this is to make sure both parties feel as comfortable as possible with the prenup parameters. If you have the same lawyer, that may be impossible to accomplish.