When Prenups Make Perfect Sense
Prenuptial agreements can act as a valuable financial safety net in various scenarios.
Although discussing prenups may not be the most romantic conversation for couples about to tie the knot, it’s a topic worth exploring. According to Ylisa Stanford, an expert in private wealth management, there are specific situations where having a prenup is crucial.
The first scenario that calls for a prenup is when a person is entering a second marriage with children. Blending multiple families into one can create complex financial dynamics and unintended family members could potentially lay claim to one partner’s assets.
Secondly, if one spouse owns a business before getting married, it’s wise to consider a prenup. Including business assets and intellectual property in the agreement can safeguard the business from being jeopardized in the event of an unforeseen divorce or death.
Lastly, a prenup should be on the table when there is a difference in wealth between the partners. The wealth gap doesn’t have to be significant to warrant a prenup as it can serve as a prudent way to protect both parties’ interests.
Although the idea of prenuptial agreements may seem less traditional, they are increasingly common, especially as millennials prioritize building their financial stability before entering into marriage.
