While NBA star Kobe Bryant may not recognize the numerous benefits of a prenuptial agreement, a host of benefits do exist and warrant consideration. The initial response of most people is that a prenuptial agreement is something only very wealthy people use to protect their assets. To the contrary, a number of people are executing prenuptial agreements to address a number of financial concerns before they get married. It must be remembered that a prenuptial agreement may be drafted in such a way as to address the unique circumstances of a given relationship. Here are a few examples:
One or both prospective spouse may have children from a previous relationship. A prenuptial agreement will set forth the intentions of each spouse as to how assets may be provided to children from a previous relationship.
This may be the most important reason for a prenuptial agreement, as a family business is typically made up of multiple family members. In the event of a divorce, a host of disputes may develop and negatively impact a number of people in and out of the family. A prenuptial agreement can specify a family member’s role in the company and vanquish costly litigation which will impact the fabric of the family and the financial security of the family and the family business.
Individuals who marry later on in life often have established careers built upon years of hard an work before the pending marriage. Significant assets typically accompany an established career. A prenuptial agreement can identify with particularity assets which the parties agree are non-marital property. This may include real estate and retirement accounts.
A mutual agreement of the parties and a “meeting of the minds” before marriage will provide peace of mind and eliminate any potential misunderstanding as to children, a family business and assets acquired prior to marriage. While a prenuptial agreement may not be for everyone, it is definitely something which ought to be given serious consideration.