With the holiday season approaching, many couples will happily get engaged and start planning their wedding and future. While the excitement of wedding planning often takes center stage, engaged couples should also have honest discussions about their financial future together. For many, discussing a prenuptial agreement (prenup) is part of this overall conversation.
For dating couples considering marriage or planning an upcoming wedding, now is the perfect time to consider whether a prenup is suitable for your unique situation. In this blog, we’ll explain why it’s important to discuss prenuptial agreements as you plan for the future with your partner and highlight some scenarios where a prenup might be the right choice for your relationship.
It’s Not About Planning for Divorce—It’s About Building Trust
Any relationship is most successful when rooted in trust and transparency, and a marriage is no different. Since money is consistently listed as one of the leading causes of marriage breakdowns, it’s crucial to be on the same page about finances when considering or planning for an upcoming marriage.
A common misconception about prenuptial agreements is that they are about planning for failure. In reality, considering a prenup demonstrates a commitment to starting a marriage with complete financial transparency and mutual understanding. For example, if Partner A enters into a marriage with $100,000.00 in credit card debt, without disclosing it to Partner B, the repayment of that debt could significantly hinder their ability to build the life Partner B envisioned.
Often, when one partner withholds consequential financial information—whether positive or negative—from their partner, it leads to conflict and mistrust that can sour other aspects of the relationship. A prenup can help prevent financial deception by ensuring both parties understand their individual financial situations, and it can also help couples enter marriage with peace and clarity regarding their finances.
When a Prenup Makes Sense for Your Relationship
Prenuptial agreements are becoming much more common and less stigmatized than they were in previous years. While many people have long believed that a prenup prepares you for failure, a recent poll shows that the tide is changing. In 2010, surveys indicated that only 3% of married couples had a prenuptial agreement; however, according to a 2022 survey, this number has increased significantly, with 15% of those surveyed having an agreement.
A prenuptial agreement can be an invaluable tool, especially for individuals with complex financial situations that could become sources of stress and conflict during their marriage. A few of the circumstances in which a prenup may be particularly important to consider are:
- Significant assets or debts: A prenup can outline how to handle existing wealth, property, or financial obligations.
- Children from previous relationships: Prenups can ensure inheritance rights and financial security for existing children.
- Family wealth or inheritance: A prenup helps protect generational assets while respecting your partner’s contributions to the marriage.
- Business ownership: Prenups can be helpful for those who wish to keep their business separate from marital property.
- Career sacrifices: A prenup can address situations where one spouse may need to pause their career to support the family or facilitate the other’s professional growth.
Although these are just a few situations where a prenuptial agreement might be helpful, it’s important to remember that every relationship is unique. Not every business owner wants or needs to sign a prenuptial agreement, and some partners may not view debt as a reason to sign. It’s important to recognize if your relationship has financial complexities that could cause stress and to consult legal counsel to understand your options.
Making the Right Choice for Your Relationship
Creating a prenuptial agreement is ultimately about starting your marriage as genuine financial partners. Instead of avoiding difficult conversations, a well-crafted prenup encourages couples to discuss their values, goals, and expectations openly. At WSM, we help couples navigate these important discussions with sensitivity and expertise, ensuring both parties feel heard and protected.
At Webb Soypher McGrath, our approach focuses on creating agreements that strengthen the foundation of your relationship rather than creating division. Additionally, our divorce attorneys in Maryland and Washington, DC, are committed to providing a wide range of family law services, including premarital agreements and mediation, as well as trusts and estates services.
If you are considering a prenuptial agreement or would like more information about whether one would be right for your relationship, our skilled family law attorneys in Maryland and Washington, DC, are ready to assist. You can contact us at 301-298-8401 to schedule a consultation so that you can begin your married life with a solid financial understanding and peace of mind.
