PROS AND CONS OF PRENUPTIAL AGREEMENTS

Prenuptial agreements are subject to some serious misconceptions.  They are neither the savior nor the destroyer of western civilization – or of marriages.  There are numerous advantages and disadvantages to prenuptial agreements.   Consider these strengths and weaknesses:

Strengths

·         If you have children or grandchildren from a prior marriage, a prenuptial agreement can protect their inheritance rights.

·         If you marry someone with a lot of pre-marital debt, a prenuptial agreement can protect you from taking on the spouse’s obligations.

·         If you own a business – including a professional practice, a prenuptial agreement can protect that interest and free it up from a messy entanglement in the event of a divorce. 

·         A prenuptial agreement can cover details of decision-making unrelated to money – i.e. responsibility sharing. 

·         A prenuptial agreement can avoid or reduce the amount of alimony paid by a party to divorce by looking ahead.

·         Older persons marrying for a second or subsequent time can protect their wealth.

Weaknesses

       ·         You could end up giving up rights to property, inheritance rights, or other benefits through
               a prenuptial agreement that you would otherwise be entitled to.

·         An unwary spouse could give up her right to recover from a business’s increase in value where he or she has contributed to the business throughout the marriage.

·         It can be hard starting your marriage with even a suggestion that you either do not trust your prospective spouse or that you don’t expect the marriage to last.

·         It’s hard to know today what tomorrow will bring, much less to know how potential issues should be handled ten years or more down the road.  Situations can develop over time that make well intentioned plans cumbersome or unmanageable.

·         While you may see yourselves as moving forward on equal footing, it is possible – if not common – for one spouse’s earning capacity to develop over time in such a way as to create vast disparities.  It’s usually hard to predict that eventuality.  

·         It’s easy to make decisions while you are emotionally vulnerable that, in hindsight, you would never have agreed to.

For these reasons, it’s often good to have a professional working with you on your agreement.  He or she can help you to avoid some of the more common pitfalls, avoid the bad decisions made based on emotion, and put together something that is reasonable and protects your interests in the long run.