Young, soon-to-be-wed couples in California naturally picture themselves as happily married for the rest of their lives. Especially if they do not have much in the way of assets, they may think prenuptial agreements are only for older, more well-to-do people entering a second marriage. However, even young couples marrying for the first time can benefit from a prenup.
One benefit of a prenup is that it makes a couple discuss finances in an open and honest way, which could benefit their marriage even if they never divorce. Having conversations about money can sometimes be difficult, but given that many arguments married couples have — some of which lead to divorce — involve money, it can help to have a mutual understanding about finances established from the get-go.
Moreover, young couples can anticipate that as they climb the corporate ladder, they will eventually amass more in the way assets. Planning for these future assets in the event of divorce is important. Prenups can also address how liabilities will be divided and they can address the issue of spousal support. After all, assets and debts obtained during the marriage may be considered marital property, which would be subject to division in the event of divorce. Prenups can make the property division process run more smoothly.
In the end, a prenup can be a way for couples to have a greater say in what happens to their finances should the marriage not last. Moreover, a prenup can serve as a good basis for future conversations about money. Therefore, even young couples without many assets can still benefit from executing a prenup.
Source: Money, “Why You Should Get a Prenup Even If You’re Young and Broke,” Erin Lowry, June 2, 2017
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