Prenuptial agreements have been hailed up as the best way of safeguarding one's assets from would be gold diggers. It is true that you can use a prenup to protect your separate property from your former spouses marauding hands should you divorce, but don't forget that roses have thorns. There are drawbacks to prenups that you should be aware of. For example, a prenup does the following.
May Send the Wrong Message
Since prenuptial agreements only come into play when a marriage ends, signing one may send the message that you do not expect your union to last forever. Depending on your temperament, you may be offended if your fiancé or fiancée suggests a prenuptial agreement. You may be wondering why you should bother with the marriage if the other partner is already contemplating a breakup.
However, before you start seeing this as a romance-kill, answer this question: would you rather take the risk of losing your separate property in the event of a divorce?
Is Based on Current Assumptions
Another drawback of prenups is that most people sign them based on prevailing conditions; at best, you may use projected or expected circumstances. However, the future is unknown, and you may think you have a good deal only to realize later that it isn't half as good as you thought it was.
For example, if your partner has many properties, then even a small percentage of it may be enough to maintain your standard of living after divorce. However, if he or she loses a significant portion of these properties, then the same percentage may not be good enough.
If this is your concern, then you should know that there is recourse: you can update the documents whenever there are considerable changes to your marriage. For example, you may need to update it when you get children or inherit valuable assets.
Is Often Signed at the Wrong Time
Many people say that the timing of a prenuptial agreement, usually after the engagement and before the wedding, is not the right time for making such agreements. There are several reasons for this, such as
- You aren't likely to have a good understanding of the major issues (such as property rights and money management) that a prenup covers at this time
- The heady romance of the pre-wedding period may cloud your judgment
- Wedding plans and preparations may force you to rush through the prenup
A good way to work around this drawback is to wed first and then make the agreement after that. In this case, it's called a postnuptial agreement. For assistance, talk to a professional like Kenneth J. Molnar Attorney.