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First comes a prenup, then comes marriage

If you are like most of our Las Vegas readers, you probably believe that only wealthy people sign prenuptial agreements prior to marriage, and that they are therefore not important for the average middle-class Nevada resident. However, that may not be the case. There are many other situations in which a prenuptial agreement, or prenup, can come in extremely handy.

For example, if either spouse has a child from a previous relationship, a prenuptial agreement can protect any assets or accounts that the parent has designated for the child’s future. Similarly, a spouse with a family business can use a prenup to protect that business in the event of a divorce. People who are the beneficiaries of trust accounts may also want to create a prenup in order to ensure that the trust remains in their name only.

The primary objective of a prenup is to determine and dictate how a couple will divide their assets and earnings if the marriage should end, thereby making the divorce process much less complicated and costly. But there are many other benefits of signing an agreement. For example, it will force the couple to be completely honest about their finances, avoiding any possibility of fraud.

So when should you create your prenup? Most family law attorneys advise couples to start the discussion long before their wedding day, to ensure that it does not raise any major issues. When you are working to create your prenup, it is best to be open, honest and fair, all of which are qualities that will serve you well throughout the negotiations as well as the marriage that follows.

Source: Fox Business, “Decision Points: Should You Sign a Prenuptial Agreement?” July 12, 2012

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