Should You Do A Prenuptial Agreement?
Media reports and anecdotal evidence suggests that more couples – especially millennials – are getting prenuptial agreements, also known as premarital agreements.
Nearly half of all marriages end in divorce, and most people are not aware of the financial pitfalls that marriage can bring. At Chase, Berenstein and Murray, Counselors at Law, we meet with many people who dearly wish they had taken the time to create a prenuptial agreement.
What’s Included In A Prenuptial Agreement?
A prenuptial agreement is a contract that deals with financial matters connected to a marriage. Prenups can be long and detailed or short and sweet. A prenup takes on added importance if you have significant assets, own a business, have high earning potential, or have been married before.
A prenup can address a wide range of issues, including:
- Ownership/possession of specific items, such as family heirlooms
- Ownership of property
- Ownership of retirement and investment accounts
- Responsibility for debt
- Inheritance for children from a previous marriage
This list represents only a fraction of the issues you can address in a prenup. There also are issues that a prenup cannot deal with, including child support, child custody, provisions that involve illegal activity, and nonfinancial matters.
Postnuptial Agreements Are An Option, Too
A postnuptial agreement is basically the same as a prenuptial agreement, except for the timing: postnups are created after a couple has married.