Many young adults saw the turmoil their parents went through in divorce. Because of this, some are taking a different approach and attitude to saying, “I do.” As more millennials are marrying later in life, they’re also deciding to form prenuptial agreements before walking down the aisle.
What is a prenuptial agreement?
A prenuptial agreement, also known as a prenup, is a legal document that specifies how engaged couples divide assets if they divorce. Typically, prenups can establish legal ownership of things like:
- Retirement accounts
- Other stock investments
- Investment properties
- The family home
- Estate plans
However, couples should know that they cannot establish child custody or child support in their prenuptial agreement. That’s because courts typically try to act in a child’s best interests and those can’t be determined before they’re born.
Going through the prenup process
When couples look to form a prenup, an attorney will typically look at all of their records. Those can include their investments, assets, debts, tax returns and even insurance policies. Once they compile all of that information together, it can give them a better picture of what their situation looks like before they merge everything together.
Planning for the future is never a bad idea
Marriage can come with its ups and downs. And if things end up not working out, spouses can save themselves some trouble by having a backup plan. If an engaged couple decides to draft a prenup, they could benefit from the help of an experienced legal professional.