Getting engaged can be the most exciting moment for a young couple. After you have that ring on your finger you are probably excited and a little bit stressed as you plan your wedding, write your vows and make plans with your fiancé about your future. While all these things are big, it is also important to remember to protect your assets with a prenuptial agreement.
Nowadays, more and more couples are creating prenups before officially getting married. The reason that prenuptial agreements are growing in popularity is because millennials are getting married at older ages than their parents, so when they tie the knot, they tend to have ongoing careers, properties or businesses.
If a divorce should happen, you will want to protect your assets. You also want to ensure that any purchases or shared decisions made after marriage remain protected.
When you should consider a change
When a prenuptial agreement changes, it becomes postnuptial. You should consider a postnup if you are moving states, buying a house with your spouse or recently inherited a large sum of money. Any major financial changes would institute a review of the prenuptial document to ensure that it will still allow for a fair split of assets if a divorce takes place.
There are some important things to note:
· Changing the agreement has limits. Both spouses need to be on board with a change in the premarital document. If you do accumulate new assets, can you agree on how to divide them?
· Timing. If you’re already contemplating divorce, then it is too late to change your prenup. The point of a prenup is to create preset terms in writing that save a lot of time and distress if your relationship takes a turn for the worst. Modification of your prenup can happen when defining ownership of new assets during your marriage.
· Have your own attorney. You and your spouse each need to have your own attorney. Finding representation is the best way to understand your rights, form the agreement and to put all the terms down on paper.
As your life progresses and you and your partner increase your financial wealth, be sure to keep your prenuptial documents up to date. Take action when major changes occur to prevent complications in the event of a divorce.