Prenuptial Agreements: Prudent Planning
Going from the excitement and romance of a marriage proposal to the reality of talking about a prenuptial agreement can be difficult, but it’s a very important step to take if you can benefit from the planning provided in these documents.
More couples are engaged in drafting prenuptial agreements than ever, and not just in New York. In 2002, Harris Interactive conducted a research study about how many couples actually use these documents: only one percent of engaged individuals admitted to it at that time. Since then, the number has jumped to three percent.
Part of the reason for the increase is the appreciation of these documents as a financial planning tool. Financial experts even advise that preparing for unwanted surprises like the discovery of a spouse who has secretly racked up credit card debt during the marriage may protect you from your own financial falling-out.
A prenuptial agreement can be extremely beneficial in certain cases, too. For example, where one party owns a business, enters the marriage with significant assets or inheritance funds, and cases where an individual is getting remarried. This is because in these instances, one or both parties may have significant individual interests that require specific protection.
Prenuptial agreements,in New York and elsewhere, are also helpful in the sense that they can help a couple complete a thorough review of existing debt and asset concerns in the marriage, sparking important financial conversations before either one says “I do.”Putting together a prenuptial agreement helps to account for the couple’s unique situation and concerns while also putting them on the same page about existing problems or circumstances.
Although each New York couple preparing for marriage hopes to never need the prenuptial agreement, it can be a highly valuable document for the purposes of planning and protection.
