Prenuptial Agreements - Not Just For The Rich Anymore

rnDo you know of anyone that has prenuptial agreement, besides perhaps an actor or millionaire, maybe Tiger Woods and his wife? You may be surprised how many couples decide on getting them these days with financial complications abounding. After all, you want to protect what is yours, right? Love is still the most important part of a marriage, but make no error about it money is always a substantial part as well. Nothing can kill love faster than the word "prenup". But with approximately one in three of all first marriages ending in divorce, and 50 percent of second or third ones hitting the skids, a prenuptial agreement is simply smart financial planning, both legal and financial experts say. Think of it as a business association or as an insurance policy to help remove some of the emotion that's naturally involved, most financial advisors will say. Marriage is not just an emotional and physical union -- it's also a financial union. A prenup and the conversations that go with it can help ensure the financial well-being of the marriage. A prenuptial accord is a contract between two people about to wed that writes out how assets will be distributed in the event of divorce or death. Such legal documents have existed for thousands of years in some form or another, particularly in European and Far Eastern cultures, where royalty have always made provisions for protecting their wealth. You don't have to be a Donald Trump to need a premarital agreement. A person who has managed to save even $50,000 may be more protective of their little nest egg than someone who has millions. After all, we all look at our assets as very valuable even if they are only a small amount, or just family heirlooms. Those are sometimes the most jealously guarded assets because it has taken a lot of hard work to accumulate even a small amount. You should consider having a prenuptial agreement if you fall into any of the following categories: • You have assets such as a home, stock or retirement funds • Own all or part of a business • You may be receiving an inheritance • You have children and/or grandchildren from a previous marriage • One of you is much wealthier than the other • One of you will be supporting the other through college • You have loved ones who need to be taken care of, such as elderly parents • You have or are pursuing a degree or license in a potentially lucrative profession such as medicine • You could see a big increase in income because your business is taking off, or that garage band you play in has just gotten a contract with a big record company. Approaching the subject So how does one approach this touchy subject? First, do it as early as possible. The mention of a prenup shouldn't come as a surprise if you and your sweetheart have been open with each other as the relationship became serious. Some lawyers recommend partners talk it over before the engagement. Let your future spouse know you believe these agreements are crucial and that you'd like to go over the subject. Once that it's agreed to have one, only the details remain. Second, the discussion must be honest. You have to be real forthcoming about why you want the agreement. It's not very romantic, but you have to appreciate what the other party's concerns are, and be respectful of their perspective also. If your future spouse had parents that went through a bad divorce, this can certainly make the decision to have a prenup much easier. For more information, click here The Legal Framework: Ontario Family Laws and Prenups.