Prenuptial Agreements Can Benefit All Marrying Couples

For any couple in love, deciding to marry is an exciting and happy time. While most couples put a lot of thought into details like where to hold their ceremony and who to invite, many don't give enough thought to the importance of having a prenuptial agreement.

A legally-binding document, a prenuptial agreement helps establish and document the personal wealth and assets that each individual bring to a marriage. When a couple marries, they essentially enter into a contractual agreement with one another that also marries their finances and assets.

Prenuptial agreements can be used to protect individual wealth as well as safeguard against future disputes related to wealth distribution should a couple divorce. While historically reserved for wealthy individuals, all couples can benefit from having a prenuptial agreement as they afford couples an excellent way to learn about each other's financial health prior to entering into a marriage.

While smart and practical, many couples still resist drawing up a prenuptial agreement believing it somehow predestines divorce. Asking a significant other to sign a prenup may be uncomfortable or lead to conflict, but these things can be overcome if a couple is truly in love and committed to one another for the right reasons.

For individuals bringing a considerable amount of wealth and assets to a marriage, a prenuptial agreement is absolutely necessary. Individuals who own property or stocks and have children from previous relationships need to be cautious and protect their financial future.

Source: Fox Business, "Decision Points: Should You Sign a Prenuptial Agreement?" Reuters, July 12, 2012

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