Last year, three cases in my circle of friends’ relatives broke their engagement because of failure in Prenuptial Agreement negotiations. Today, more and more couples get into the discussion of having a prenuptial or not to have a prenuptial!
What is a prenuptial agreement? It is a legal contract between two people before marriage to spell out how all the assets will be distributed in case of death or divorce.
When I first heard of what a prenuptial is, I realized it’s not something that was invented in the U.S. but it’s been around for thousands of years. In the Far East royal families had rules to protect their wealth. Also in Islamic traditions, the marriage contract has a section designated for the bride and groom to dictate any conditions they want the other to abide by for certain rights to be preserved.
It’s understood that in this day and age young or old couples getting married must talk about prenuptials and spell out exactly how each one’s assets are being protected. In my opinion, it is fair in the case when the person who accumulated the wealth has done it through solo hard work. In the case of when both have worked hard to earn the wealth or shared the responsibility and support for each other during their marriage, then, in case of divorce, both are entitled for their share that they’ve accomplished.
The divorce rate is on the rise today as one in every three first marriages end in divorce and 50 percent of second and third marriages go that route. Actually, just last week I was in Chicago and met a minister who officiates marriages. Last year, he conducted 100 marriages! He put his head down as he stated that 50 of them ended in divorce.
Think of it as a business arrangement or as an insurance policy to help remove some of the emotion that’s naturally involved,” says Nancy Dunnan, a New York City financial adviser and author. “Marriage is not just an emotional and physical union — it’s also a financial union. A prenup and the discussions that go with it can help ensure the financial well-being of the marriage.
Of course there is no place for romance once a “Prenuptial” is mentioned. That’s what the other school of thought argue about. Marriage should be entered with the intention to stay in that marriage forever and to have a prenup discussed proves that there is no trust and no commitment.