The unfortunate truth is that divorce has become extremely common in the United States. This trend has been consistent for the past couple decades and does not appear to show signs of changing anytime soon. With the divorce rate figures being what they are, it is important to consider ways to protect yourself if a worst-case scenario occurs in your marriage.
Prenuptial agreements have the ability to provide you with the protection you need. It may not be fun conversation to have with your significant other but considering a prenuptial agreement may be in your best interest for the following reasons.
Protect your assets
Have you worked for many years to save a significant amount of money? Maybe you have a number of assets passed down through your family for generations. If you have accumulated a lot of assets and are afraid of losing them in a divorce, a prenuptial agreement may be for you.
Your concern of losing your assets in a divorce is fair. While most of the things you acquired before your marriage will remain yours, there are exceptions to this rule. Creating a prenuptial agreement that outlines how to divide your assets in the event of a divorce will not only save you time and money, but it can help ease your concern as well.
Protect your business
Imagine building a business from the ground only to have to give it away in a divorce. This is about as close to a worst-case scenario as any business owner can think of. Fortunately, a prenuptial agreement can ensure that you remain in control of your business if your marriage comes to an unexpected end.
You can put together a prenuptial agreement that addresses your specific concerns. Business owners, in particular, should strongly consider this option because it allows you to keep your company out of your divorce. Designating your business as separate from your marriage will allow you to maintain control of your business regardless of how you decide to divide your other assets.
Protect yourself from debt
Discussing finances with your spouse before marriage can be a bit taboo. Bringing up the topic may lead to an uncomfortable conversation, but it is important to have a good understanding of the financial situation you are marrying in to.
If you discover that your spouse is drowning in debt or spends money well beyond his or her means, you may want to consider a prenuptial agreement. Marrying someone in a poor financial situation can lead to you taking on a problem that you otherwise may not have considered. Creating a prenuptial agreement can help shield you from this issue.