Prenuptial Agreements: Romance Killers or Financial Saviors?
When you’re planning on entering into a life-long commitment, it can seem counter-intuitive to plan about what happens after. A prenuptial agreement can be perceived as unromantic and pessimistic, but it can also be a very wise financial decision.
Prenuptial agreements are on the rise especially among the “baby-boomers” entering into their second and third marriages,
according to the Wall Street Journal.
This is because baby boomers are looking to protect their assets, which are done with a prenuptial agreements, or a legal contract that is created before a marriage to determine what happens to the assets should the relationship end, either by death or divorce.
The president of the American Academy of Matrimonial Lawyers, Marlene Eskind Moses said about prenuptial agreements, “they used to be for the rich and famous… [but] it’s become more commonplace in the market as an estate-planning opportunity for [baby] boomers.”
The financial crisis appears to be accelerating the trend of these prenuptial agreements. With home values does almost 31% from their peak in 2006, baby boomers have become more anxious to hold onto whatever they have left.
The majority of individuals entering into prenuptial agreements are doing so to protect their assets. Gariel Cheong, a divorce attorney with Infinity Law Group LLC in Quincy, Mass., says that prenups help “not just with the markets, but with protecting their spouses and children,” adding that couples that are getting married without many assets are still seeking a prenuptial for these reasons.
Without a prenup, couples are throwing themselves at the mercy of a wide range of state laws that vary greatly about what will happen in the event of a death or a divorce.
After the decision is made to draft a prenup, it is important to make sure that the result you desire will be achieved with this contract. If the signing terms of a prenup are later deemed rushed or uninformed, a court can occasionally have the discretion to chose not to enforce the terms of the prenup. There are decades’ worth of case law for attorneys to pull on when they are either defending or challenging the validity of a particular agreement.
To fight the chance of a judge rejecting the prenup, according to the Journal, it is prudent for the couple to have each side represented lawyers.
There are a list of specific list of items which are generally acceptable on a prenup, but the only way to be certain is to consult with an attorney who is well practiced in the area.
Interestingly enough, since prenuptial agreements are contracts, same-sex couples are often capable of entering into them. Even if the state doesn’t recognize the relationship, there is a freedom to contract and as long as it is carefully drafted a same-sex couple will be able to have a prenup.
The decision to enter into a prenup can be a very difficult decision, but understanding that it protects both sides equally and that it protects both sides from a sudden and untimely death can be important to having a prenup while still keeping the romance alive.
