Context:

Prenuptial agreements are not exclusive to the wealthy and can be valuable for anyone with significant assets, business interests, or concerns about debt. While historically viewed as unromantic, prenups have gained popularity, especially among millennials who value financial independence and asset protection. These agreements can be tailored to address specific assets, debts, and spousal support, ensuring both partners' interests are protected. The process requires full financial disclosure, and it's important for couples to consult with legal professionals to ensure the prenup complies with state laws. As such, prenups are particularly crucial for business owners, those with complex financial situations, or individuals entering a second marriage.

Dive Deeper:

• Prenuptial agreements, historically stigmatized as unromantic, are gaining popularity among millennials who prioritize financial independence and want to protect their assets and investments accumulated before marriage.

• A prenup can be essential for individuals with significant business interests, as it helps delineate what is considered marital property and protects the business-owning spouse's assets and income from becoming joint property.

• These agreements require full financial disclosure from both partners, with documentation like tax returns, W2s, and business valuations necessary to ensure transparency and prevent future legal challenges.

• Prenups can be tailored to address specific financial concerns, such as the division of assets or debt, and can include stipulations for spousal support, ensuring a fair distribution should the marriage end.

• The legal validity of a prenup is subject to the laws of the state where it is drawn up, making it crucial to review the agreement with a legal professional if the couple relocates to ensure compliance with the new state's laws.

• Couples with disparate financial situations, like one partner having significant debt or one entering a second marriage, can benefit from prenups as they provide clarity and protection for both partners' financial interests.

• Business owners, in particular, benefit from prenups as they can protect the growth and reinvestment of business assets during the marriage, distinguishing them from marital property subject to division in a divorce.