Prenuptial agreements are a tool used to protect individuals’ assets in the case of a divorce.
There are many misconceptions surrounding them that are important to dispel.
1. They are only for wealthy people
Prenuptial agreements are a common form of contract used when one spouse possesses more assets than the other. As a result, many associate it with the wealthy. However, any couple, regardless of financial situation, can use them. There does not need to be a wealth imbalance either; spouses on equal financial footing can use a prenuptial agreement as well.
2. They favor the wealthier spouse
By law, prenuptial agreements must be fair. Ones that tilt overwhelmingly in one spouse’s favor without reason tend to face rejection by judges. Individual representation is important for each spouse to receive a fair deal in a prenuptial agreement and for the contract to hold legitimacy in court.
3. They indicate a lack of romance
Given the high rate of divorce in the nation, it is not abnormal to want to have protection in case of a divorce. A prenuptial agreement is not an indication of a lack of love or trust or the sign of a cold-hearted individual as many seem to believe; on the contrary, it is a reasonable precaution that both spouses are free to take advantage of. Besides sheltering assets, they can also help to keep liabilities like debt separate and can dispel doubts that a person is after another’s money.
While a certain stereotype of wealth and unromanticism seems to surround prenuptial agreements, having one is not unnecessarily an unwise move for both parties, wealthy or not. Written properly, they are reasonable agreements that can be beneficial for both parties involved.
