Contrary to popular belief, prenuptial agreements are not just for millionaires, A-list actors, and famous singers. They’re for a lot of people, not just the super-rich. As a matter of fact, divorce attorneys typically suggest that all high-net worth individuals, business owners, and people with children from a previous relationship consider the advantages of a prenup before they say “I do.”
Nobody wants to imagine that the love of their life will one day be their ex, but we have to be realistic. Five out of every ten first marriages end in divorce and the chances of divorce increases with every subsequent marriage. With these statistics in mind, many individuals choose to protect themselves by drawing up a prenuptial agreement.
But Prenups Are Romance Killers
People commonly view prenuptial agreements as romance killers, but not everybody feels that way. Some financially savvy individuals feel that prenups are desirable because they invite transparency and openness at the very beginning of a relationship. Instead of being “in the dark” about a partner’s finances, prenups make fiancés open books about their income and assets.
Some of the benefits of a prenuptial agreement:
- It reduces the stress of a divorce.
- It drives down the costs of a divorce, sometimes dramatically.
- It facilitates a speedy divorce.
- Because both spouses know exactly what to expect, it reduces conflict and the fear of an unknown outcome.
- It can ensure that separate assets brought into a marriage remain separate.
- It can determine the amount and duration of spousal maintenance instead of letting a judge decide.
- It enables the spouses to maintain control over asset and debt division.
- It can ensure that a business remains a separate asset.
- It can ensure that children from a previous relationship inherit certain assets.
New York is an equitable distribution state, which means that a couple’s assets are divided in a “fair” manner, which does not always translate to an even split. If a couple cannot decide how to divide their assets, a judge will decide for them and when this happens, the couple is at the mercy of the judge and has zero control over the judge’s decisions.
Related: Nassau County Prenuptial Agreements
The idea of letting a judge split one’s hard-earned assets with their soon-to-be-ex spouse makes a lot of people nervous, especially those who have amassed wealth over their lifetimes. A prenuptial agreement affords peace of mind and a sense of control, both of which are priceless.