Why Sign a Prenup?
Did you know that in the US, one in ten couples now enter into some kind of prenuptial or premarital agreement (“prenup”)? Many couples however are reluctant to enter sign a prenup because it seems unromantic and may appear to indicates a lack of trust in the relationship.
There are several important reasons why prenuptial agreements are a great idea for soon to be married couples:
1. If you do not sign a prenup, your marriage will be governed by a complex set of laws. The choice is between a set of rules negotiated by you or imposed by the State. roughly one out of four married couples regret leaving their financial futures in the hands of their state laws.
2. Far from undermining trust, the process of drafting and negotiating a prenuptial agreement may, in fact, strengthen your relationship. The process requires a full disclosure of your financial situation and involves an open and honest discussion of about how you will handle your money and plan your future. One psychiatrist states: “openly agreed upon rules are likely to be a better foundation for growth than are those latent rules that surface and prove to be either disagreeable or downright outrageous (‘What do you mean, you don’t do dishes?’)”
3. Prenups prepare you for marriage. Sooner or later you are going to have to talk about money issues. Why not do it now and save heartache and trouble later on? After your honeymoon is over you will soon find out how earning and spending money is an integral part of your marriage.
4. Prenups can be drafted to protect both spouses not just a wealthy spouse.
5. It just makes sense. No-one plans on their house burning down, ending up in a nursing home or suffering a disability but they still take out insurance. As Dr. Ruth says: “We live in such a litigious society. Nobody knows what life brings. Hopefully we will never need it. What’s the big deal? Let’s do it and give it to the attorneys…for the new millennium, a prenup is part of a mature relationship, based on love, mutual trust and optimism.”