A prenup is a signed contract that protects both parties in case of a divorce or death. It can bring up an uncomfortable, but necessary, conversation about finances. It can set the stage for how the couple talks about finances in the future.
People tend to look down on prenups because they believe that they’re planning for divorce before a marriage begins. This, however, is only a misconception. Many people are misinformed about prenups, which leads them to be scared of them.
- A prenup is planning for divorce
The most common myth is that the couple is planning for their divorce when they sign a prenup. However, many couples that sign a prenup avoid one of the biggest stresses in a marriage: money. Because they had the “money talk” early on in their relationship, the couple is better prepared for a conversation about their finances later on.
- My partner will get offended
It may be a little uncomfortable at first but once you explain the reasoning behind the paperwork, the experience will be smooth. A prenup is just a rational conversation about the future of your finances. Before you get married, you should be on the same page. The paperwork can give both parties control over their own money and can make sure that their debts are kept separate.
- A prenup is only for wealthy people
Prenups are for every marriage, no matter the amount of money, because they aren’t solely for assets and debts. They can protect property, a future child’s education or religion, clarifying financial responsibilities, inheritance and ownership rights of insurance. As you age, these aspects may come into effect. It’s helpful to have an open dialogue from the start.
- Prenups only protect the spouse that makes the most
Prenups protect both spouses equally. Before a prenup is complete, a judge must review the document. If it’s too one-sided, the prenup will not be authorized. A judge will make sure that the prenup is as fair as possible for both parties.
Although signing a prenup is not the most romantic task before a wedding, it is one of the most beneficial. Having an open conversation about money from the start of your marriage can relieve future stress and make sure that you’re on the same page as your spouse. Many are scared of the document because they don’t know how helpful it can be in the long run.