Inheritance, Debt & Children: Pre-Nup Issues You May Have Forgotten

In the 21^st century, many engaged couples are turning to the option of pre-nuptial agreements more openly. For many, witnessing the financial deterioration of their own parents, following divorce, has resulted in the need to protect their own assets and assets of their families.

So, when is it best to consider a pre-nuptial agreement? With many financial and relationship experts giving advice in this area, the following is a general description of the key issues that may necessitate a pre-nuptial agreement before getting married.

First, and most obvious, if you are carrying a significant amount of wealth prior to being married, you may want to protect your assets with a pre-nuptial agreement. While the non-wealthy partner may feel offended by the suggestion of a pre-nuptial agreement, simply based on your own personal wealth, you can navigate those concerns by incorporating spousal support into the pre-nuptial agreement.

Another area of concern involves the existence of children from a prior marriage. Within the pre-nuptial agreement, you can insert language which outlines the provisions of estate division and sharing in the event of your death. To ensure your children, from the prior marriage, are appropriately cared for in the event of your death, the pre-nuptial agreement may outline the waiver requirements of your current spouse in terms of elective shares to your estate.

While you may not be wealthy now, many engaged couples also consider entering into a pre-nuptial agreement when one spouse feels he or she may be the recipient of a large sum of money after the marriage takes place. Often, this occurs when there is an expectation that a large sum of money may become available as an inheritance or some other asset disposition after the marriage takes place. To protect your interest in the inheritance, or asset, in the event of divorce, a pre-nuptial agreement may outline the parameters for handling this matter.

In contrast, pre-nuptial agreements are also written to protect one partner from the damaging effects of debt accumulation by another partner. Within the pre-nuptial agreement, the terms of repaying the pre-marital debt can be outlined providing for guidance both during the marriage and in the event of divorce.

As with any legal or financial decision, taking your time to carefully consider all options is important. With many engaged couples moving towards pre-nuptial agreements more commonly, these important financial and legal factors should be considered as part of the wedding planning process.