Ask the Experts: Should I have a prenuptial agreement?

Although no one gets married with plans to divorce, the sad truth is that many marriages do end that way. For some couples, it can be prudent to have a prenuptial agreement.

A “prenup” is a legally binding contract between two people who are about to marry that, among other things, dictates how property will be divided in the event of a divorce, and whether alimony or spousal support will be paid. In the absence of such an agreement, state law decides these issues.

A typical prenup states that each partner will keep the property they bring into the marriage, and that assets accumulated during the marriage will be split 50/50. However, your prenup should be customized to your particular situation. You should consider having a prenup if you fall into any of the following categories:

You earn significantly more income than your future spouse
You have substantial assets
You own a business or business interest
You anticipate receiving an inheritance
You have children from a previous marriage
Although creating a prenup might extinguish the flames of romance for a while, the open communication it requires can serve as a building block to a strong marriage. It can also provide each partner with financial security and peace of mind, and may save you from emotional distress and court costs later on.

To create a valid prenup, keep the following points in mind:

Hire a separate and independent lawyer for each partner
Sign the prenup at least six months before the wedding
Fully disclose all financial information
Make sure the agreement is fair to both parties and is reasonable