Family Matters

Why Are Prenuptial Agreements on the Rise?

For many young couples, the words “prenuptial agreement” may sound like something reserved for celebrities, wealthy families, or partners entering a second marriage. However, a prenuptial agreement can be valuable for couples at nearly any stage of life. Prenuptial agreements are becoming more popular as they are considered a practical planning tool for couples to address their finances transparently.

More specifically, couples have the opportunity to discuss their investments, set expectations, and decide together how certain financial issues will be handled during the marriage and in the event of divorce or death. Preparing a prenuptial agreement requires both partners to discuss topics that couples sometimes avoid, including:

• Current income, assets, and debts;
• Spending and savings habits;
• Business interests and career plans;
• Expectations surrounding joint and separate assets;
• Financial support if one spouse steps away from work to raise children;
• Family gifts and anticipated inheritances; and
• Long-term financial goals

While these conversations may feel uncomfortable at first, they can help couples commence a healthy and successful marriage with greater transparency and fewer assumptions. The process for preparing a prenuptial agreement should feel collaborative, not adversarial. To that end, while it may seem like requesting a prenuptial agreement may signal distrust or pessimism about the future marriage, many couples find the opposite is true. The drafting process is centered around honesty, respect for each other’s concerns, and clarity.

The best way to approach entering into a prenuptial agreement is to start discussing it early.

It is best to frame the prenuptial agreement as a way to protect both partners and reduce future conflict, with the goal of making the agreement fair and equitable given the circumstances. It is also best to provide full disclosure of the income, assets, and debts each partner brings into the marriage. It is also strongly recommended that both parties have legal counsel to help ensure fairness and understanding of the terms being negotiated.

If you are planning to marry in the next year or two, consulting an attorney well in advance will help you understand your options. At Obermayer, our experienced family law attorneys will structure a prenuptial agreement tailored to the life you are building with your future spouse.