Prenuptial agreements, also known as marital agreements, are on the rise in the United States. Why? More millennial couples are creating prenups before they get married, according to the American Academy of Matrimonial Lawyers.
Millennials understand that prenups are not just for wealthy couples. Prenuptial agreements can protect couples in a variety of ways. Younger couples are becoming more aware of the advantages of having a prenuptial agreement, even if they don't have significant assets.
What to include in your prenuptial agreement
A prenuptial agreement can and should be tailored to your specific situation. What can you include in your prenup? Here are few examples:
- Protection of property owned before marriage, including savings accounts
- Allocation of individual and shared property and assets
- Distribution of death benefits
- Distribution or cancellation of spousal support
- Obligation of debt and who is responsible for paying off debt incurred before and during marriage
- Outline who will care for any pets
Your agreement should protect your personal assets. It can also help protect your future financial goals in the event you get divorced. You should work with an experienced family law attorney to make sure your prenup offers the best protection. Your attorney can walk you through the process of creating your prenup agreement and make sure nothing is missed that may cause turmoil down the road.
No one plans to get divorced, but that does not mean you shouldn’t have a plan in place in the event your marriage doesn’t last. A prenuptial agreement may not be the easiest thing to discuss when you are about to get married, but it will help both of you have a better understanding of your assets and how they may be impacted in the future.