Long gone are the days where prenups were only for the rich and famous. Couples across the financial spectrum have discovered that making a decision about each individual’s rights regarding assets and investments are best handled while their partnership is strong and before they tie the knot. It may sound silly to bother with a prenup when you’re madly in love and in alignment on most things, but that is exactly the time to do it; when you’re seeing eye to eye and not overwhelmed by emotions.
A prenuptial agreement is just as it sounds; coming to an agreement about the nature of your marriage. A good prenup is a solid foundation you need for healthy years ahead. Here are 10 reasons a prenup should be next on your pre-wedding planning list.
1. Ensure the Marriage is About the Relationship
I wish this wasn’t true, but the phrase “gold digger” is part of our vocabulary because those people exist and are good at keeping their intentions a secret. If you are wealthier than your partner, discussing a prenuptial agreement will put all the cards on the table and is the best way to reaffirm that your union is about the two of you, not what you own.
2. Discuss Important Issues Before Marriage
Working on a prenup while you are in the best years of your relationship is likely to bring out a level of honesty that can highlight your best commonalities and potentially shine a light on major disagreements. Finances are a difficult point of discussion for most couples and the earlier you can speak openly about your beliefs and goals, the more time you have to address any disparities. If the marriage ends in divorce, neither of you will be blindsided.
3. Reduce the Drama
We’ve all heard a divorce horror story and chances are it involved someone feeling vengeful or a big financial loss. Thankfully prenups lay out the terms for how finances are resolved and are a no brainer for removing the emotional decision making that can wreak havoc on both parties at the end of a relationship.
4. You Have Unequal Assets
Whether it’s a pension, an inheritance, or a vintage car, the spouse with more assets runs the risk of a significant loss during a divorce. A prenup can be an insurance policy to cover specific valuable assets that need to be protected.
5. 38% of Marriages Result in Divorce
Since the COVID outbreak in Canada, the divorce rate is rising. Lost work, financial stress, and quarantine are taking a toll on relationships. If divorce feels like an impossibility, remember that the world can change abruptly and there is no downside to having an agreement in place to protect your future.
6. Avoid Surprise Debt
Prenups aren’t just for assets. A prenup can address individuals’ debts incurred before the marriage and be updated with debt acquired during the marriage. If one or both parties are entering the divorce with student loan debts, credit card debt or other debts, it’s a good idea to talk about and document what happens to those debts in the event of a divorce.
7. Provide Safety for a Victim
Some divorces are a result of surprise life events or a cheating partner. With a prenup in hand, terms for the dissolution of a marriage can be carried out without additional pain.
8. Avoid Unfair Treatment
In its essence, a prenup isn’t complicated. It is simply an insurance policy for fair treatment.
9. Save Money
Divorce proceedings can take a significant financial toll, especially if there are disagreements and you need to go to court. Instead of spending (in some cases up to) thousands of dollars or going into debt if the relationship goes south, work with legal counsel to craft a prenup.
10. Reduce Stress
Being prepared is never the wrong choice and knowing what steps to take if a disaster strikes can make everything go more smoothly. A prenuptial agreement is legal preparation for you both to ensure fair treatment and equal rights, if you choose to divorce.
If marriage is on your horizon, reach out to Richmond Tymchuk Family Law LLP to discuss your matter by phone, FaceTime, Zoom, and email. Contact us anytime at [email protected].