Whilst it may not be the most romantic of topics to cover when you’re entering a new stage in your relationship, prenuptial and cohabitation agreements have become more and more important for couples who are planning to live together or get married. Contrary to popular belief, prenuptial agreements are not only for wealthy celebrities – they can provide significant benefits for any couple when it comes to the financial well-being of you both, not to mention the overall well-being and health of the relationship itself. So, just how important is a prenuptial agreement? Here are some reasons every serious couple should consider getting one.
#1. If One Person Owns More Assets:
Most of the time, people are in different stages of their lives when they enter into a relationship that leads to marriage or cohabiting. If you have managed to acquire a lot of assets or have inherited properties, for example, that your partner does not have, you might be worried about what will happen to them if the relationship or marriage were to come to an end. Usually, the things that you owned beforehand will still be yours in the event of a divorce, but there are exceptions. A prenup can help you plan ahead as to how you are going to deal with specific properties and assets, potentially saving you time and money should the worst happen.
#2. If Earnings are Mismatched:
It’s also not uncommon for couples to be in relationships where one will earn more money than the other. This could be a small or a large difference in earnings. If you make less money than your partner, then it’s a wise idea to make sure that you will be entitled to financial support in the future, particularly if you have children together or if you have given up financial opportunities in order to focus on your marriage and family. A prenup allows you to agree in advance on the amount, duration and type of alimony, giving you peace of mind for your financial future.
#3. If Either of You Own a Business:
If either you or your partner owns a business or you have a joint venture together as a couple, then it’s wise to draw up a prenuptial or cohabitation agreement to determine what will happen to the business in the event of a relationship breakdown. If your relationship or marriage were to fail, the last thing that either of you would want is to have to give up your business to your soon-to-be ex. M. Sue Wilson can provide you with more advice on getting a prenup if one or both of you are entrepreneurs.
#4. Managing Debts:
Finally, if you or your partner has a lot of debt or has poor financial habits, the last thing that the other partner will want is to find themselves responsible for the other’s debt in the event of a break-up. Signing a prenuptial agreement can help protect you, your assets and your credit score in the event of relationship breakdown.
Whilst it might not be the first topic on your mind when you’re feeling loved up with your partner, a prenuptial agreement can provide you with peace of mind about your future.