If you are marrying in the near future, you probably have a lot on your mind, and one of the things you may be considering is whether you ought to put together a prenuptial agreement. Essentially, “prenups” are legally binding contracts that make certain determinations about matters that relate to a couple, although the exact material covered in such an agreement will vary broadly from one couple to the next.
There are many factors that may impact your decision as to whether to create a prenuptial agreement, but you may find it beneficial to do so if you:
Are marrying later in life
If you are marrying later in life, you may have more assets than someone who marries, say, straight out of college. Many people who marry after already establishing profitable careers want some extra security with regard to the career they worked to build, so you may want to consider creating a prenuptial agreement to ensure your life’s work remains yours.
Have considerably more than your partner
Even if you do not marry at an older age, you may find it useful to draw up a prenuptial agreement if you have considerably more than your partner in terms of assets. If, for example, you own valuable real estate or rental properties heading into the marriage, or if you own a business or have substantial investments, you may want to consider a prenup even if you marry young.
Have differences in debt levels
Just as you may want a prenuptial agreement if there is a substantial difference in assets between you and your partner, you can say the same about debts. If your partner has substantially more debt than you heading into the marriage, or vice versa, the party without considerable debt may desire a prenuptial agreement to limit his or her level of liability.
These are some of the circumstances that lead many couples to consider creating prenuptial agreements, but this is not an exhaustive list.