Can you be ‘too broke’ for a prenuptial agreement?

CAN YOU BE ‘TOO BROKE’ FOR A PRENUPTIAL AGREEMENT?

As your wedding day gets closer, one of your friends pulls you aside and explains how beneficial it can be to get a prenuptial agreement. You hope not to get divorced, of course, but you can cover your financial bases just in case.

The problem, as you see it, is that you are young and you do not have any serious assets. Is there any reason to get a prenup?

While every situation is unique, there are some good reasons to get a prenup anyway. For example, do you have any debt? What about student loans? Will either one of you keep going to school — or go back to school — after the wedding, taking out new loans to do it?

Prenups are not just about dividing assets. They are also about dividing debts. If your spouse has far more debt than you, it is important to make sure you’re not obligated to pay off any of it after a divorce.

You also want to consider economic growth. Maybe you’re a young business owner, and you make $50,000 per year. You don’t really feel like you need a prenup. However, what if your company grows in the next five years and you’re bringing home $500,000 annually? What if the company goes from being unknown to a multi-million dollar valuation?

If so, you need to protect that business from a potential divorce. The prenup can do that, protecting your future even when you don’t think you need it today.

Those who are thinking about getting a prenup, you need to make sure they know exactly what legal steps to take.

2019-10-31T18:22:33+00:0030 Oct|