Prenuptial agreements used to be an unthinkable subject - one that when broached, created emotional conflict or bad feelings between soon-to-be-spouses. But thanks to a younger generation, they've become more commonplace and less taboo.
A prenuptial agreement, also called a prenup, is a legal document that creates a framework for a couple's financial picture and preferences in the event of divorce. A prenup can safeguard your property, make your financial intentions transparent and ease any tension there might be around money.
Who needs one?
More and more, couples are looking at a prenup like an insurance policy. Younger people are getting married at an older age and may therefore have more assets to consider and protect. Additionally, both spouses are working, so a prenup is mutual protection and approached in the way of a team effort.
Since you're entering into a legal and financial relationship, why not protect it as such? A prenup isn't just for those with money. It can also be a benefit if you:
- Have a previous marriage that may include children or spousal support
- There's a discrepancy between how much wealth you each have (one has a lot, one has a little)
- Own a business
- Have significant debt (or your fiancé does)
- Have large retirement accounts
When marital property is divided in New York, it's divided equitably, but this doesn't always mean fairly. Anything acquired during a marriage is considered marital property and that includes retirement accounts and the like. It's a good idea to protect yourself, and your assets, with a prenuptial agreement to keep your financial expectations clear.