When to Consider a Prenuptial Agreement

Prenuptial agreements, better known as prenups, have received a lot of media attentions in the last several years. With the spotlight on celebrities who draft these often lengthy documents prior to their weddings, these pre-marriage contracts have garnered much publicity preceding anticipated unions. Popular in the wealthy, a prenuptial agreement is essentially a legal document describing boundaries of a relationship and how assets will be divided in the event of a divorce. Although the jury is still out for many on the necessity and propriety of prenups, there are certainly advantages associated with their use. 

For the independently wealthy, a prenuptial agreement can be essential to protecting assets. While historically this need has been realized by men in the event of divorce, many women also want the right to their own property upon separation, especially when the possibility of alimony exists. Prenups are encouraged for anyone who has substantial wealth, owns a business or part of a business, has children from previous arrangements, stands to receive a large inheritance, or has aging parents or disabled family members who will need support later in life. In order to ensure security and stability later on, a prenup can be used to predetermine protocols should a separation unfortunately occur. While these measures can lead to trust issues, it can also be a great way to make sure both parties are on the same page. Even though a prenup may anger or upset one party, it’s also a very prudent move if you have significant assets. Far too many spouses have divorced and lost half of their fortune or business due to a lack of a prenuptial agreement. Former professional basketball player Michael Jordan divorced his wife Juanita, and it cost him close to $168 million dollars once the divorce was final.

While prenuptial agreements can be a good way to protect one’s assets during and after a marriage, they are also extremely effective at lessening costs in the case of divorce. Although the concept may be depressing to consider for a newly engaged couple ready to start a life together, around half of American marriages do not end happily. Establishing conditions for a separation of property, custody for children and terms of the divorce proceedings prior to a marriage can be very useful when things turn south. For example, when Britney Spears married Kevin Federline, he only walked off with a million dollars upon their separation. Had other celebs not encouraged Spears to arrange legal documents, it would have been substantially more on top of lawyer and court costs.

Many people consider a prenuptial agreement a violation of trust, others see it as a simple necessity. Whether you see your future marriage with rose-colored glasses or in the harsh light of reality, divorce is almost guaranteed in at least half of marriages. If you have assets to protect, children to plan for, or do not want a costly divorce should the situation arise, a prenuptial agreement can be a worthwhile precaution.

The Cantor Law Group handles all aspects of Family Law in Arizona. For more information on Prenuptial Agreements or the Arizona Divorce process, please see our website.