Prenuptial Agreements to Protect the Family
Most everyone has heard of using a prenuptial agreement to
protect personal assets. In fact, prenuptial agreements are
often created to decide how current and future monetary assets,
the home, and other property will be split between the two
parties in the event of a divorce. Prenuptial agreements are
not, however, always about the two people getting married.
Often, they are also about other important people in the lives
of the engaged couple, as well.
With approximately 1/3 of first time marriages ending in
divorce, and 50% of subsequent marriages ending in the same
fashion, it is becoming increasingly common for one or both
parties to already children from a previous marriage. Therefore,
a prenuptial agreement is an important way to protect the
children who will inevitably become involved in the marriage.
One issue that should be addressed in a prenuptial agreement is:
who will inherit the couple's money if both should die? Another
important concern to consider and address in a prenuptial
agreement is: how will the biological children of one party be
affected if that person should die? In other words, if Bill has
two kids and he marries Lorie, what will happen to Bill's kids
if he should die? Will Lorie continue to provide for them? Or,
will they be left to fend for themselves? Of course, no parent
wants the latter for his children.
A step-parent has no legal obligation to care for children after
the death of the spouse. Therefore, a prenuptial agreement can
ensure that the children of the biological parent are still
cared for after the parent's death. Issues such as inheritance
and life insurance, and who the beneficiaries are of both,
should be included within the prenuptial agreement. Therefore, a
person with children who is getting married should consider a
prenuptial agreement in order to secure a strong future for the
children.
Children are not the only people who can be affected by a
divorce. Other family members and business partners can be, as
well. If Beth owns a family business, which has been passed down
for generations in her family, she can protect the family
business with a prenuptial agreement. Since a prenuptial
agreement has to be fair to all parties, Beth will most likely
need to "give" something in return in the prenuptial agreement.
The peace of mind knowing that the family business will remain
in tact, and stay within the family, is well worth the trade off.
In a similar fashion, business partners can be protected with a
prenuptial agreement. If Tom and Scott have worked over the past
five years to create a successful business, and Tom is about to
get married, the business and its assets can be protected by the
prenuptial agreement. This not only protects Tom, but it
protects Scott, as well. Without a prenuptial agreement, Tom and
Scott's business could potentially be torn apart by a divorce.
A prenuptial agreement can also help protect the parents of one
of the partners who are about to get married. For example, if
Cindy has parents who are ill and need to be cared for, Cindy
could have it included in her prenuptial agreement that her
parents can live with the married couple to be cared for.
Similarly, she could have it included in the prenuptial
agreement that the couple agrees to pay for care for Cindy's
parents in a residential nursing facility.
Prenuptial agreements may not seem "romantic," but they are a
realistic part of marriage. Creating a prenuptial agreement
forces couples to look at potential problematic areas beforehand
and come up with solutions that work for both parties.
Prenuptial agreements also help ensure the financial security of
both people who are about to get married and, more importantly,
they help protect the ones they love.