That may be the only time that you see us quote anything from Kanye West. Many wonder when or even why they should consider a prenup prior to entering marriage, especially for women who routinely earn less than white men. Also, no one wants to go into a new marital union thinking about the possibility that it won’t last. However, there are many advantages to signing a prenuptial agreement.
In fact, Kanye apparently took his own advice and got a prenup prior to when he wed Kim Kardashian. In contrast, Jeff Bezos, who recently split from his wife after 25 years, did not have a prenup. As such, Jeff and his spouse, MacKenzie, had to reach an agreement as to how they were going to divide their billions. As part of their agreement, MacKenzie was awarded 25% of the couple’s Amazon stock, which amounts to approximately $38 billion.
While most of us aren’t considering billions as part of a divorce settlement, it is a good idea to consider a prenuptial agreement prior to entering in a marriage. Nebraska is considered a marital property state. That means that everything acquired during the marriage is considered part of the marital estate. Two exceptions to this general rule are property acquired by means of inheritance or specific gifts to one of the parties.
Further, Nebraska is an equitable distribution state, meaning that the marital property will be split between the spouses in a way that is considered equitable. However, deciding what is equitable is often the hardest part of a marital property division.
That’s where a prenup could possibly help. If prior to the marriage, the parties spelled out with what they were entering the marriage and what they intended to happen to those assets or debts upon dissolution of the marriage, it could save money, energy and grief if the couple decides to split.
Another way that prenuptial agreements can be beneficial to the family is to establish what happens if one of the parents takes a step out of or back from her/his career to help with the family. Women are more often the parent who steps out of, or back from, the workplace to help care for younger children. Being out of the workforce for a period of time reduces a worker’s earning capacity, retirement savings and social security payments. If a couple can have a thoughtful conversation about whether one of the spouses is going to stay home for a period of time with children and what that could mean for her/his future earnings, they may be able to craft an agreement about what should happen upon a divorce.
Having a prenup also gives a couple an opportunity prior to marriage to discuss their own respective financial situations, philosophies about money and have a candid conversation about how the couple is going to manage their money moving forward.
Let’s face it, ½ of all marriages end in divorce. One of the major reasons that couples fight and argue is money. Having conversations about money prior to a marriage can result in a more solid financial base for your union moving forward.
If you’re considering a prenuptial agreement, contact us. We’d love help.