Why Prenuptial Agreements Are Becoming More Common

Prenuptial agreements in South Carolina and throughout the country are becoming more popular with couples planning to marry. What’s the reason for the uptick in the number of prenuptial agreements (also called premarital agreements)? There are several. Before we discuss them, let’s take a look at what a prenuptial agreement is.

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What is a Prenuptial Agreement?

A prenuptial agreement is a written, signed contract between two people who are planning to marry. As a general rule, prenuptial agreements deal with financial issues, such as how finances will be managed during the marriage, what each spouse will or will not inherit from the other in the event of death, and alimony and division of property in the event of divorce. There are limitations on what can be included in a prenup. For example, prenuptial agreements cannot be used to determine custody of existing or future children or support for those children.

Couples make a full disclosure of all of their assets and debt before entering into a prenup, and each partner are to be represented by their own attorney. It’s also best for couples to negotiate and sign the agreement well in advance of the planned wedding, so that neither partner feels pressured to sign for fear that the impending wedding will be called off if they don’t. It is even recommended that prenup negotiations should start immediately after an engagement occurs!

At one time, prenups were uncommon, especially for people without significant family wealth, but that has changed in recent years.

Prenuptial Agreements in South Carolina Are on the Rise

It stands to reason that couples with significant wealth (or wealth disparity) might want a prenup, or that couples entering a second marriage might want to protect the inheritance of the children from their first. But there are reasons that even younger people, first-time intended spouses, or those with limited means might choose to get a prenuptial agreement.

Cultural Acceptance of Divorce

Decades ago, people were hesitant to even consider a prenuptial agreement because having one seemed like evidence that they were planning to divorce. While that’s still a barrier for many people, divorce has become more culturally accepted, and most people entering into a marriage these days know that divorce is a possibility. Many of them have already lived through a divorce, either their own previous marriage or their parents’ divorce. They want to avoid the messiness and stress they experienced or witnessed firsthand.

Second Marriages

People who are remarrying, whether after divorce or widowhood, may want their children from a previous marriage or relationship to inherit most of their property. Without a prenuptial agreement as part of their estate plan, the surviving spouse might take more of the estate than their late spouse intended, and then pass those assets on to their own children instead.

Protection for Stay-at-Home Parents

Most younger people marrying these days have their own careers. At the same time, they may be looking ahead to having children, and realizing that they want one parent to stay home with the kids. Doing so, of course, can come at a cost to one’s career. A prenuptial agreement can provide formal recognition of a stay-at-home parent’s contribution to the family, and plan to compensate that accordingly.

Entering Marriage with Debt

More and more people are coming into marriage with debt, and a prenuptial agreement is a way to explicitly confirm that one party will remain responsible for any debt they have brought into the marriage. Often the debt addressed in prenuptial agreements is student loan debt, which can run into the hundreds of thousands of dollars, but other debt can be addressed in a prenup as well.

Later Marriages and More Assets

Both women and men are marrying later than they used to; the median age at first marriage is 28.6 for women in the United States, and 30.5 for men. That means that people may have accumulated more assets before marriage, and they want to be sure they will take those assets with them if the marriage ends. Premarital property, typically is not divided between the spouses in a South Carolina divorce. That said, declaring certain property separate or nonmarital in a prenuptial agreement often saves arguing over the nature of the property in a divorce.

Should You Have a Prenuptial Agreement?

Not everyone needs a prenuptial agreement, but almost every couple can benefit from negotiating one (even if they never sign it). Negotiating a prenup forces people to discuss an uncomfortable topic—money—before marriage, and to get on the same page so there will be no unpleasant surprises afterward. It may seem like a paradox, but negotiating a prenuptial agreement can actually help you prevent a divorce.

Of course, there are certainly couples who should take steps to create a valid and binding prenuptial agreement. Couples with significant wealth, or a significant wealth disparity, should probably have a prenup. So should people planning to marry who have children from a prior relationship, especially if they are marrying later in life.

To learn more about the meaning of a prenuptial agreement and whether you and your fiancé(e) should have one, contact Brinkley Law Firm LLC to schedule a consultation..