Relevance of Prenup Agreements in Today's World

A prenuptial agreement, commonly abbreviated as prenup is a contract drawn prior to a marriage or civil union. The content of a prenup agreement varies widely, but typically establishes the provisions for spousal support and distribution of property in the event of breakup of marriage or divorce. Additionally, a prenup may contain conditions for guardianship and clauses for forfeiture of assets when the separation or divorce is a result of adultery.

When Should You Consider Signing a Prenup?

The best scenario when a prenuptial agreement makes sense is when you earn significantly more than your partner or have much more wealth.  In these cases, a prenup will ensure that the size of the alimony is not stupendous. Other cases when a prenup is a practical option are when:

• Your financial status is much weaker than your partner’s: In this case, a prenup will ensure that you have adequate financial stability, should your marriage dissolve.
• If you intend to quit your job post marriage: Women often quit their jobs to raise children without paying heed to the fact that a source of their income and wealth is blocked. While this scenario is fine so long as the husbands have a decent source of income, the problem arises on dissolution of marriage. In such a scenario, women end up without a job or any financial help from husbands.
• Your partner has a substantial debt load: Prenup in this case is a no-brainer. Here, a divorce will not only leave you with a broken heart, but with an empty pocket.

Prenup: To Sign or Not to Sign?

Since the terms of a prenuptial agreement are decided on by both the partners, it’s a win-win situation. Consequently, should a divorce happen, a prenup will spare you the agony of fighting over finances. Most importantly, a prenup will ensure that the financial well being of the children is protected even after the spouses go their separate ways. Prenups are primarily disregarded on the grounds that they are unromantic and demonstrate that the partners lack faith in their relationship. While these reasons are debatable, a prenup is a feasible option, provided both partners consent to it.