Why high-net-worth couples should consider a prenup

Discussing the demise of a marriage before it even begins is not an easy conversation for future spouses to have. Yet, divorce becomes a reality for thousands of couples in California every year. If spouses divorce with a prenuptial agreement in place, they can save themselves not only a lot of frustration and stress, but also thousands of dollars. Prenuptial agreements can be lifesavers, especially for those who are bringing high-value assets into the marriage. 

Situations that call for a prenup 

A prenuptial agreement is a formal contract between two future spouses that details what should happen to assets and debts as well as each individual’s rights and responsibilities in the event of divorce. While not every couple will need a prenup, some justifiable situations call for one. For instance, if one individual owns a business before the marriage, a prenuptial agreement makes sense since a divorce could potentially break up or destroy the business. A prenup can protect the business and allow for full discretion on how the business is managed now and in the future. 

Also, if there’s a disparity in wealth between future spouses, a prenuptial agreement may be warranted. Marrying into wealth can significantly improve one party’s lifestyle. If divorce happens without a prenup, he or she may have spousal support rights and certain property rights. Also, signing a prenuptial agreement can show that the individual is not marrying strictly for money or wealth. 

Help with prenuptial agreements 

It does not mean a marriage is doomed to fail just because future spouses sign a prenuptial agreement. However, prenuptial agreements are legal documents and can be complex. Those in California who have questions or want to know more about prenuptial agreements can benefit by meeting with an experienced and knowledgeable family law attorney.