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How prenups can benefit both parties

On Behalf of | Jun 22, 2023 | Uncategorized

The media’s portrayal of prenuptial agreements benefiting only the wealthy spouse has given it a poor reputation. Additionally, many believe that drafting a prenup is the same as planning for divorce. The mere mention of a prenup might upset your spouse, but showing how it can benefit you both might help change their mind.

Benefits of a prenuptial agreement

Provides a better understanding of your financial obligations

It is unavoidable to have the money talk with your partner. Who will pay for groceries and utilities? Child care? Home maintenance? Sooner or later, you will have to discuss how to manage your finances as a married couple.

Because of the sensitivity of the topic, it may help to make drafting a prenup a collaborative experience. Consider working with your partner to create a budget that benefits you both and outline how you will be managing your joint accounts.

Drafting a prenuptial agreement before marriage allows you to lay it all out in the open and may even help you avoid arguments regarding critical financial decisions.

Prepares you for a what-if scenario

Nobody wants to think about divorce or death when they are preparing for marriage. But it happens. Writing a prenuptial agreement means that you have a record of what assets belonged to whom before the marriage.

In case of a divorce, it can save you from the headaches and emotional turmoil of negotiating.

Saves you both from each other’s debts

In the absence of a prenuptial agreement, it is possible that the spouse will be liable for a portion of the debts their partner owes after divorce. Apart from properties, a prenuptial agreement can help you both plan out how to divide debt.

Otherwise, the court may decide for you. While Michigan is not a community property state, there is a chance the court may not equally divide debt.

When it comes to drafting a prenup, it is important to treat your partner like an equal. Pay attention to their concerns and take their recommendations into consideration. This way, your spouse does not feel left out but more secure in the relationship.