Posted by By: Hannah Werner
There is debate regarding prenuptial agreements (or prenups, as they are more commonly
known) and if signing one is worth potentially disturbing a happy couple’s upcoming vows. The
conservative (or, to some, cynical) view believes that its best to protect all parties in a couple so
it is best to prepare an agreement in case the marriage takes a turn for the worst. The hopeless
romantic side (seen by some as naïve) declares that couples should not go into their marriage
already planning for its end, and prenups will encourage arguments amongst couples.
But, what the latter view ceases to acknowledge is that prenups protect both parties from
each other, and from other parties, such as creditors. Below are five benefits to creating a
prenup that some may have previously considered.
- Assert debts from both parties before “I Do”
If one party enters into the marriage without debt but their spouse had preexisting
debt, a prenuptial agreement can help assert what happens to the debt after finances are
combined. For example, if a groom has student loans but his future husband does not, they
can decide before they say their vows what happens to that debt if the parties divorce.
Specifically, one does not have to acquire their spouse’s debt just because they are married-
meaning in the event of divorce they may not need to contribute to paying off their now ex-
spouse’s debts acquired prior to the marriage. - Speed up a potential divorce
In case of divorce, prenups can aid in cleaning up potentially messy proceedings.
Because it sets forth the terms of a divorce prior to the marriage actually ending, a prenup
can help the parties keep clear what each individual is entitled to and clearly states the
terms previously agreed to- including personal funds, retirement proceeds, and business
earnings. As divorce proceedings can quickly become difficult and involve complicated
feelings, a prenup removes any unfair treatment that could be involved in later
negotiations. - Keep personal property just that- personal
In the case of uneven wealth, a prenuptial agreement allows each party to set forth
what they are bringing to the “table” (i.e. marriage). A prenup can provide comfort for the
wealthier party that they are not risking their fortune by getting married, and can allow the
less wealthy side to make it clear that they do not expect more than what they came into
the marriage with. This insurance policy assists couples with feeling comfortable throughout
their matrimony should they question the other individual’s motives. - Determine martial property before its acquired
If one is a business owner or large investor, they should highly consider a prenuptial
agreement to protect themselves in the event of divorce. A prenup can set forth what a
business was valued at during the nuptials and make it clear what happens if the business
valuation increases by the time a couple divorces. For example, if a company is valued at $1
million when a couple marries in 1980 and when they want to get divorced in 2010 and the business is valued at $10 million, a prenup can declare what should happen to that $9 million increase. Some will choose to split the increase with a spouse, while others may want to keep the funds themselves if they feel their future ex-spouse did not contribute to the growth of the business. - Initiate important conversations
Prenuptial discussions allow each party in the marriage to be honest and
straightforward with what the other can expect during their relationship. These
conversations can be used to address differences in beliefs regarding finances or other goals
that may not have come up already throughout the course of one’s earlier relationship. It can be a difficult decision whether it is in one’s best interest to sign a prenuptial
agreement. Many people have strong opinions on prenups and think one may not be best
suited for them and their spouse. Whatever one decides, each party should be informed on the
benefits that prenups bring to couples and why they might want to sign it prior to an upcoming
wedding.
About the Author:
In May of 2020, Hannah graduated with a B.A. in Public Relations and a B.A. in Psychology from Auburn University. After working at Ankin Law Office for almost a year, Hannah discovered an interest in law and joined the Chicago-Kent community. Hannah is currently a 2L representative for the Society of Women in Law, as well as a member of various organizations matching her passions, such as the First-Generation Law Student Association and the Chicago Kent Animal Legal Defense Fund. Follo