When many Massachusetts residents consider a prenup, they think about the contract only in terms of asset protection. In reality, however, prenuptial agreements have a number of benefits in addition to protecting wealth in case of a high asset divorce. One of the biggest reasons to negotiate a prenup is to go through a crash course in each party's financial habits.
Part of the process of negotiating a prenup involves in-depth discussions concerning the income, assets and debt held by each party. Through those talks, both people have a chance to learn how the other handles money. Rather than entering a marriage blind to those matters, couples can work through their individuals approaches to spending, saving and taking on debt.
Research shows that strife over finances is a leading cause of marital unrest, and can lead many couples to ultimately divorce. Couples who understand each other's financial habits prior to tying the knot have an opportunity to avoid many of those issues. Negotiating a prenup allows parties to decide in advance how money will be shared, how expenses will be divided and what each party would be entitled to in the event of a divorce.
In today's world, more and more Massachusetts couples are comprised of two individuals who have their own career goals and personal paths. That means both parties will amass wealth over the course of the marriage. In the event of a high asset divorce, having a prenup in place can make it far easier to navigate the division of wealth. However, simply negotiating a prenup can give both spouses the information they need to work out a plan for their shared financial future, which can help avoid a divorce altogether.
Source: nymag.com, "Should I Sign a Prenuptial Agreement?", Charlotte Cowles, Dec. 22, 2016