Reasons to Get a Prenuptial Agreement

Legal and financial experts say a prenup is a good choice. With one in three of first marriages failing and 50 percent of second or third ones also failing, don't you think it's a good choice too?

We need to get out of the frame of mind that prenups are unromantic. Marriage may be an emotional and physical union, but it is also a financial union. A prenup is a sign of incredible trust and financial openness. This is needed to truly achieve complete intimacy with your partner.

What Exactly is a Prenup?

A prenuptial agreement, commonly abbreviated as prenup, is a contract entered into by two people prior to marriage that contains how assets will be distributed in the event of divorce or death. Other contents included could be any rights to spousal support during or after the dissolution of marriage.

Prenups have been around for thousands of years. They were particularly popular in European and Far Eastern cultures where royal families wanted to protect their wealth.

Consider a Prenup

Most people do not have a million dollars in the bank. Most people work hard for their money and save when they can. People tend to be protective of the little nest egg they have because of the hard work it took to accumulate it.

Consider a prenup if:

You have assets such as a home, stock or retirement funds.

You own all or part of a business.

You may be receiving an inheritance.

You have children and/or grandchildren from a previous marriage.

One of you is much wealthier than the other.

One of you will be supporting the other through college.

You have loved ones who need to be taken care of, such as elderly parents.

You have or are pursuing a degree or license in a potentially lucrative profession such as medicine.

You could see a big increase in income coming your way.

Prenup Etiquette

Mentioning a prenup should not come as a surprise to you or your partner if the relationship is trustworthy.

Couples should talk about prenups before the engagement. Let your partner know how important this is to your relationship.

Prenup Basics

Talk to your partner about what you want included in the prenup. Draw up a list of assets and talk about it before hiring any lawyers. This will keep the intimacy intact before the lawyer gets specific and makes everything seem all business-like.

You both need your own lawyers. This helps ensure an enforceable agreement. Prenups have been thrown out because a spouse did not have legal representation. Both lawyers will co-write the agreement with their clients' best interests in mind.

Draw up the prenup months before the wedding. This needs to be thought out reasonably. A quickie prenup might not hold up in court.

Be honest. Concealing any asset or debt can invalidate your prenup.

Everyone involved should sign. You, your partner and lawyers need to sign the documents.

Local lawyer review. If moving to another state, have a local lawyer review the agreement in order to see whether you need to make changes.