In recent decades, couples have come to view prenuptial agreements more favorably than they did in past years. Prenups have become increasingly popular among high-asset couples in our state.
When deciding whether you need a prenup, consider what it can do for you.
The benefits of prenups
Among the many benefits of putting a prenup in place before you get married are the following:
- Defining each spouse’s financial responsibilities
- Outlining the division of property if a divorce occurs
- Streamlining the process of ending your marriage
- Protecting yourself against your spouse’s debts
- Reducing the time and costs of a divorce
Full financial disclosure is critical when creating a valid prenup. Only when both parties disclose all financial information can they know what they are bringing to the marriage and what they can take away if they get divorced.
Unfortunately, many people do not make enough effort to disclose their financial information. If the prospect of divorce arises, this lack of information can complicate matters. In turn, complications can neutralize the benefits of prenuptial and postnuptial agreements.
For example, say that you and your spouse used your prenup to outline property division upon divorce. If one of you failed to disclose complete financial information when signing the prenup, the other spouse could try to invalidate the document.
It’s wise to look at prenups as foundations upon which to build the financial structure of marriage. Because no one enters a marriage expecting it to fail, it makes little sense to withhold financial information, even unintentionally.
Gathering documentation and including all financial information in a prenuptial agreement is often a complicated process. As such, many couples benefit from guidance when drafting marital agreements. It can also help to learn about Pennsylvania marital agreements and the laws that govern them.