Prenups are a good idea for students

It is a fact that people are waiting longer before getting married or even choosing to be in a committed relationship without getting married. However, love is a fickle concept that sometimes strikes for couples not finished with their undergraduate or graduate studies. Oftentimes these students live on shoestring budgets, but a prenuptial still may make a lot of sense.

Why a prenup if there are no real assets?

Prenuptial agreements traditionally address the distribution of assets if there is a divorce. Typically, one or both spouses come into the marriage with a substantial income that will then become a marital asset. It can also address couples who have been married before with complex financial plans already in place or have children from a previous marriage. So why would starving students need a prenup?

Planning for the future

Many financial experts believe that prenups are also about the future. Perhaps one or both students are getting their MBA, studying to be a doctor or going into a field where they are likely to be in a top income bracket. This would have made sense for Amazon founder Jeff Bezos, who now is splitting a $137.1 billion estate with his wife – the couple married years before Jeff made his first million, but he was a Princeton graduate with degrees in computers and engineering. Even if he did not become the richest man in America, Bezos’s future looked to be a prosperous one.

Student loans are a way life for many, and some end up accruing a large amount of debt while others were thriftier or worked their way through school. A prenup can protect those who are not comfortable with the amount of student loans the other accrues.

The beginning of an important conversation

Some may feel awkward talking about money with a future spouse, but disagreements over money and finances are a common reason for divorce. A thoughtful and binding prenup drafted by an experienced family law attorney starts a discussion about expectations involving money and provides a solid financial foundation for couples as they move forward together.