3 reasons you may want a pre-marital or postnuptial agreement

You and your spouse have many details to consider when preparing for marriage, from where you will live to what your family will look like. As you plan for the future, it can also be important to consider whether a pre-marital agreement is right for you. When should you consider a pre-marital agreement or discuss a postnuptial agreement with your spouse?

1. You or your spouse owns a business

Business owners know the amount of time and dedication that goes into building their business, and a pre-marital or postnuptial agreement can be one important step in protecting the company you have built. As Forbes notes, your pre-marital agreement can outline whether the business will be considered separate property, how you will value the company in divorce and a variety of other details.

2. You or your spouse have significantly different incomes or family wealth

While a large income or significant savings can be a great asset when building a household and a life together, it can also become a point of contention in divorce. A pre-marital or postnuptial agreement allows you and your spouse to have an important conversation about your finances. It also allows you to keep your finances separate, to determine how you will handle your savings in divorce and outline how you intend to handle spousal support.

3. You or your spouse are entering the marriage with debt

Your financial considerations before marriage should include any existing debts. If you use jointly-owned funds to pay off your student loan debts, mortgage, credit card debt or other debts, then those debts may be considered jointly-owned in divorce. A prenuptial agreement ensures that this commingling will not occur.

Discussing a prenuptial or postnuptial agreement with your spouse can be an important way to prepare for your future together.