In the first few months of your relationship, it is easy to lose yourself in the romance. You can be quite wrapped up in the bloom of new love, making sure that real world problems don’t penetrate your bubble. After a while, however, you are going to have to start making some decisions that will impact your future. Even couples that find it quite easy to communicate with one another can find it quite difficult to talk about their finances. In particular, any mention of prenuptial agreements is often considered taboo within a relationship. However, times are changing and this specific subject matter is something that is being broached more often. Let’s take a look at why this is happening and why it is so important:
It Is Not Just for the Wealthy
Even just a few years ago, most people assumed that such contracts were for couples where either one or both had vast fortunes at their disposal. This is a trend that is quickly being overtaken by even middle class and working class couples assenting to such arrangements. This is becoming so commonplace that in the past several years there has been a sharp increase. This is largely because more and more people are becoming aware that they, too, have the means to get a prenuptial agreement.
Not Just Pre- but Also Post-
Some people tend to get caught up with planning their wedding that they do not really stop to think about anything else. Well, if you were not paying attention to either of your financial situations, there are still plenty of options available. This is due to the existence of a postnuptial contract. This means that even once you are already married, you are still able to equally and fairly divide your assets among one another. This comes in quite handy for people who may jump into marriage.
More Than a Division of Wealth
In addition to being considered unromantic, pre-nups are also considered to be somewhat of a selfish act. Now that many people are being encumbered by debt, however, it is seen as a merciful and even selfless act. This is because this contract can also help specify just to whom the debt belongs to. If not, one person’s liabilities can quickly become their spouse’s problem as well. Therefore, this arrangement can actually free one person from impending financial constraints.
Facing the Facts
No one wants to think about the dissolution about their marriage when it has only just begun. Nonetheless, the facts remain and they are some things that many individuals have come to terms with. In 2014, the marriage rate in the U.S. was 6.9 per 1,000 people, while the divorce rate was 3.2 per 1,000 people, according to the CDC. Even in the EU, for every 1,000 people 4.2 got married, and 2 got divorced, according to data provided by the EU in 2011. People are no longer shocked or surprised by divorce and therefore may be a lot closer to accepting the statistics. As such, it has made pre- and post-marriage contracts less of an awful subject.
These are just a few of the reasons that a prenuptial or even a postnuptial for newlyweds may not be just a bad thing. It might actually prove it to be quite useful for both parties.