Prenuptial agreements used to be something that only the very wealthy had. However, many couples from all economic backgrounds consider them today, partially because there are so many young people who are actively engaged in operating their own businesses. They want to make certain that their romantic entanglements don’t end up inadvertently destroying everything they’ve worked so hard to build.
Unfortunately, signing the wrong prenup can be just as bad as not signing one at all. If you’re heading into a marriage that involves a prenuptial agreement, here are three things you need to consider carefully.
1. Don’t sign a fidelity clause without careful consideration
Most people probably think that a clause that punishes a spouse financially in the divorce for cheating is fair, but you need to review the agreement carefully.
Make sure that the terms are equal for both you and your intended. Make sure that there has to be verifiable proof of an affair before the clause kicks in. Then, whatever you do, take the agreement to heart. If the marriage sours, get completely out before you get involved with anyone new — a relationship that begins after you separate but before the divorce is final is still “cheating.”
2. Don’t forget to include an acceleration clause on any financial agreement
If your prenup includes figures for support in the event of a divorce, make sure that those figures will keep up with both inflation and your lifestyle. The money you are accustomed to living on now could seem paltry in the future — which means that what seems like a generous settlement or allowance in today’s prenup could seem terribly small tomorrow.
Include a clause that periodically upgrades the financial agreement for inflation and lifestyle changes. That’s the only way to keep it fair in the long run.
3. Don’t allow yourself to sign without full disclosure
Did your intended fully disclose all of his or her financial holdings and assets prior to asking you to sign the prenup? If not, why? How do you know if the prenup is fair?
You can’t judge the nature of a prenup until you have all the facts — and you’re certainly owed that much when you’re heading into a marriage.