Written By: Brandy Miller | December 1, 2016 | No Comments
Prenuptial agreements are agreements entered into before a marriage outline how assets, income and other financial responsibilities will be handled in the event of a divorce.
We constantly hear about the multi-million dollar prenuptial agreements of celebrities and wealthy people. Prenups are definitely necessary to protect them and their sizable assets. However, this may give the impression only wealthy people should use or do use prenuptial agreements. Nothing could be further from the truth. Couples of all income levels use prenups to protect their finances and assets in the event of a divorce.
For the wealthy, prenups protect them and their sizable assets. This can be especially important if an affluent person marries someone from a less wealthy background. In these cases, a prenuptial agreement can limit how much of the wealthy partner’s assets can be divided.
Why Prenups May Be More Important for Non-Wealthy Couples
For someone who is not wealthy, prenuptial agreements can be even more important. If an individual with hundreds of millions of dollars in assets loses a sizable portion of the net worth in a divorce, they may still have large reserves of wealth. If someone from a middle-class background, however, loses half of their assets, they may be unable to meet their financial needs or may find their retirement or future is threatened.
For the non-wealthy, prenuptial agreements ensure a fair and equitable split and can help protect both parties from financial distress. If one partner contributes significantly more to the marriage, a prenuptial agreement can also ensure a fair split of assets. If one partner has significant debt or has been previously married, these financial factors can significantly impact both parties in a divorce. A prenuptial agreement can be beneficial in protecting couples in both situations.
If children are involved, a prenuptial agreement — for couples of any income bracket — can ensure children get the proper support. If one party in the marriage decides to stay home to care for the children, a prenuptial agreement can ensure they are protected financially in the event the marriage ends.
Do You Need a Prenuptial Agreement?
A prenup may be especially important if you are not wealthy but are getting married and:
- Own a business or intellectual property
- Have children
- Would be financially distressed by losing half your assets
- Are marrying someone with significant debts
- Have a high risk of divorce
- Are marrying someone from a different income bracket
- Plan to stay home to care for the children
- Have been married before
There are many reasons to get a prenuptial agreement, and wealth is just one of these. Although prenups are quite common among the wealthy, they can be especially important for those who don’t have millions of dollars. If you’d like to draw up a prenuptial agreement or would like to learn more, contact Miller Law Group for a consultation. Miller Law Group has attorneys focusing on family law, estate planning and related matters. Our legal team serves Berks County and the Reading region in Pennsylvania, and we have already served thousands of clients like you. Our commitment to treating clients with personalized attention and care makes us the solid choice if you need support before your marriage to protect your assets.