Prenups: A financial planning tool for the young and old

| Jan 11, 2021 | Family Law | 0 comments

Young or old, couples in Oregon planning to get married have a lot of their plate when it comes to decision-making. This goes well beyond determining what their wedding will look like. While much hope and joy goes into planning and preparing for a wedding, there are some potentially difficult conversations and decisions that also must be made.

Now more than ever, financial assets need to be protected due to the rate of divorce spiking since the beginning of the pandemic. All couples should consider ways to protect themselves in the unfortunate event that they need to separate.

The benefits of a prenuptial agreement

While it is a difficult pill to swallow, one of the reasons why prenuptial agreements have grown in popularity is the fact that the divorce rates have been steadily increasing. It is difficult to ignore the news of an increase in divorces and the challenges that more couples may have to face. Individuals planning a marriage may worry about meeting this same fate.

Prenups not only helps spouses plan in case of a divorce, but they can also be viewed as financial planning tools. A prenuptial agreement takes an individuals assets and property that are the result of their hard work and considers how best to preserve and protect them in the event of a divorce.

How does a prenup work?

A prenup is not just about protecting assets or ensuring that what each spouse brought into the marriage remains theirs after a divorce. It works as an agreement that protects the rights of each spouse and their obligations to certain assets and property. This is where property will be labeled either separate or shared (marital). In matters where a family business is involved or one spouse receives an inheritance, a prenup can help protect both of those assets.

By having a honest conversation about prenups early on, couples can avoid emotional and difficult conversations down the road if their relationship ever fails. Divorce can be messy, lengthy and costly, but a prenuptial agreement can reduce much of the difficulty.