OFTENTIMES, it is vehemently interjected with “It’s not just in our culture!”
In fact, aren’t we just a culture of romance? Wouldn’t the prenuptial (often referred to as “prenup”) or premarital agreement be construed as a romance-killer?
Though prenuptial agreements have been stigmatized by popular culture as cynical arrangements, they have become more and more common in recent years. The reality is, with approximately 30% of all first marriages, and nearly 50% of all second and third marriages, ending in divorce, a prenuptial agreement, simply called prenup, may be seen not only as practical but as necessary.
“Think of it as a business arrangement or as an insurance policy to help remove some of the emotion that’s naturally involved,” says Nancy Dunnan, a New York City financial adviser and author. “Marriage is not just an emotional and physical union -- it’s also a financial union. A prenup and the discussions that go with it can help ensure the financial well-being of the marriage.”
While it could seem to be the smartest thing to do- especially if one party has significant financial holdings- the prenup can be seen as an indicator that one party does not truly believe in the relationship. Or in our popular belief, it could easily imply lack of trust.
The truth is that if a couple truly cares about each other, it’s never a mistake to take the smarter path to ensure equal protection. Prenuptial agreements can even override California’s very generous community property laws.
A prenuptial agreement is a signed and notarized contract that spells out how a couple will handle the financial aspects of their marriage. Although not very romantic, having this honest financial discussion prior to a wedding ceremony can be a very positive experience.
Contrary to popular opinion, prenups are not just for the rich and famous. While prenups are often used to protect the assets of a wealthy fiancé, couples of more modest means are increasingly turning to them for their own purposes.
According to Nolo, the pioneer in promoting self-help legal services, here are some reasons that some people want a prenup:
- Pass separate property to children from prior marriages. A marrying couple with children from prior marriages may use a prenup to spell out what will happen to their property when they die, so that they can pass on separate property to their children and still provide for each other, if necessary. Without a prenup, a surviving spouse might have the right to claim a large portion of the other spouse’s property, leaving much less for the kids.
- Clarify financial rights. Couples with or without children, wealthy or not, may simply want to clarify their financial rights and responsibilities during marriage.
- Avoid arguments in case of divorce. Or they may want to avoid potential arguments if they ever divorce, by specifying in advance how their property will be divided, and whether or not either spouse will receive alimony.
- Get protection from debts. Prenups can also be used to protect spouses from each other’s debts, and they may address a multitude of other issues as well.
“If you don’t want a divorce court to make the final decision about how your assets will be divided, a prenuptial can protect you,” says Dunnan. “Without a prenup you’re letting your financial future be determined by a third party.”
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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 450 N. Brand Blvd., Ste. 600, Glendale, CA 91203, phone number (323) 356-3803 or (323) 254-6787.
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