The importance of a prenup in a high-asset divorce

No one wants to think about divorce when they are getting married. Yet, it is important to look ahead to the future and protect what is yours, particularly if you have a high net worth. Signing a prenuptial agreement now can make all the difference later, should your marriage end in divorce.Couples often ignore signing a prenup because one or both of them consider it an insult. Reframing your outlook to see a prenuptial agreement as a contract between you and your future spouse can help to make this issue easier to digest. The bottom line is that if you have valuable assets and wealth, it might be in your best interest to sign a prenup.

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How can a prenuptial agreement help you?

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Some of the ways signing a prenup can help you both include:

•     Fostering communication between the two of you. Discussing finances and assets before your journey to the altar ensures that you both understand exactly what is at stake.
•     Identifying what finances and assets you each bring to the marriage. By spelling everything out in a prenup now, it will be easier to divide up the assets and finances during the divorce, which is bound to be an emotional time.
•     A prenuptial agreement can offer protection for your heirs down the road. If either of you had children prior to the marriage, you will want to protect them and the assets that they will inherit someday.
•     You can protect your business with a prenuptial agreement. This can help to ensure that you will not lose the business that you worked so hard to build should your marriage end in divorce.

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Couples who bring valuable assets and riches to their marriage probably won’t regret signing a prenup should the marriage fail. Seeking assistance when drafting your agreement can ensure that your prenup will be deemed fair and equitable in court down the road.