Are nuptials on the way? Suppose that you are going to be married soon. Perhaps it’s a second or even third marriage. Or maybe another family member—for example, a son or daughter, or a grandchild—will be the one walking down the aisle. In any event, it should be a blissful occasion.

Wedding

But you cannot ignore reality. With so many marriages in this country ending up in divorce, it is worthwhile to consider the use of a prenuptial agreement (“prenup” for short) for protection, especially when one of your long-term objectives is to preserve assets for the descendants of a prior marriage. This is increasingly becoming commonplace in estate planning.

Background: Essentially, a prenuptial agreement is a legally binding contract between an intended bride and groom. The contract lists each person’s personal and real property and outlines a plan for distribution of that property in the event that the marriage does not work out.

It may seem unromantic or miserly for an engaged person or couple to take steps that will provide for an orderly divorce. But it is a fact that close to half of all marriages entered into today end in divorce. A prenuptial agreement actually may lessen the pain and suffering in the long haul. It can also offer financial protection to children of a prior marriage. For these reasons, prenups no longer have the same stigma that was attached to them in the past.

Usually, a prenuptial agreement can be prepared in about the same time it takes to prepare a will. As with a will, the agreement ensures that your property will be distributed in the manner you desire. In effect, this is a form of “marriage insurance.”

The foundation of a successful prenuptial agreement is full disclosure of all assets. Both parties must be meticulous in listing everything of value that they own or in which they have an interest. Once that is done, the parties must agree.  However, where the respective wealth of the parties is substantially unequal, some compromise may be necessary. Reason: In some states, the assets of both parties are put into the same “pot” upon divorce. The couple then splits the assets equally. Thus, one spouse could walk away with substantially more than he or she had when the marriage began.

Reminder: For most people, this is not a do-it-yourself proposition. Consult an experienced legal adviser to create a document that reflects your personal needs and desires.