You got married in 1998 and divorced in 2011. You’re now considering a second marriage. Since it’s a bit later on in life, you’re bringing a lot more assets to the table, with a net worth that is now over $1,000,000. You’re proud of what you’ve accomplished and you want to protect yourself moving forward.
Should you consider a prenuptial agreement? It may help you protect what is yours if you eventually get divorced — something that you know is possible, based on your own experiences. Four reasons to at least consider having the document drafted include:
1. Your significant other doesn’t have nearly as many assets as you do.
You know there’s far more to your relationship than money, and you don’t necessarily care that your significant other has less than you. However, you don’t want to ignore the fact that his or her net worth is just $20,000. Without a prenup, if assets get divided roughly in half, you could stand to lose a lot because of the difference. A prenup may ensure that you keep your $1,000,000, while your partner keeps the $20,000.
2. You anticipate a loss of income.
Maybe your partner has just as much net worth as you do, but you’re planning to raise children together. You may leave your job behind to do it. In that case, you may want a prenup to make sure you’re taken care of after a split. Can you get back into your current profession? If not, you could take a huge and lasting financial hit, all without the support you were anticipating. The prenup can help keep that support in place.
3. You own a company.
You didn’t get to your current net worth working for someone else. You started your own company and built it from the ground up. If you and your significant other get married and then divorced, do you want the company to be at risk? A prenup can help ensure that you don’t lose it or the money you need to keep it running. Your way of life is secure and you won’t lose the time and money you’ve invested.
4. You and your ex have kids.
You were already married once. If you have kids, you don’t want part of the substantial inheritance you planned to leave to them to go to your new spouse under any circumstances. It just wouldn’t be fair to them. The prenup can get this in place so that there is not a legal battle in the future.
These are merely four examples, but they do show you the value of prenups. You’ve probably been thinking about at least one of these issues as the second wedding draws near. Be sure you know what options you have to protect yourself and your assets.
Source: Nov. 30, -0001