When Should You Consider a Prenuptial Agreement?
- Company, Firm, Corporation, Etc.:
If you’re a business owner, you should consider a prenuptial agreement, as, upon divorce, you otherwise could wind up having to compensate your wife or husband for a portion of the business’ value; in a worst case scenario, you won’t have the cash to do this, and you could wind up having to sell the business.
- Real Property:
If you own a house prior to marriage, you should consider a prenuptial agreement because, as you pay down mortgage principal on the home during the marriage, or make improvements to it, you’re otherwise creating a marital interest in the home, and you will probably have to compensate your spouse for part of its equity upon divorce.
- Greater Income:
If you make much more money than your fiancé, you should consider a premarital agreement because otherwise everything you earn during the marriage will probably be considered marital property and will likely be divided 50/50. Also, if your income’s significantly higher than your fiancé’s, upon divorce, you’ll otherwise likely wind up paying him or her alimony.
- Bigger Net Worth:
While premarital funds are not supposed to be divided upon divorce, you should consider a prenuptial agreement because, otherwise, sometimes these funds can be transmuted into marital, divisible assets through re-titling of accounts, mixing premarital funds with funds earned during the marriage, etc.