Prenuptial agreements are looked down upon because your significant other may think you think less of them. It’s viewed by many as a lack of faith in a partnership. Some may even take it as a personal attack! Saying things such as,
“Why should I sign a prenup? We love each other.”
Well, this is how all relationships begin but the fact of the matter is that 50% of all marriages in America will end up in divorce or separation. A simple coin flip, call it in the air, “Heads or Tails?
For me, growing in a divorced family was tough because everything was related to money. As a child, it made me feel like a commodity rather than a human being. So, before getting married I told my future wife that I’d like to have a prenuptial agreement because of my upbringing. Despite it being an uncomfortable conversation, it has a lot of benefits that aren’t spoken about.
Here are 4 reasons why a prenuptial agreement can strengthen your relationship:
1. Forces You to Talk About Your Finances.
Working with couples in the financial industry the story is always the same. One partner deeply cares about the intricacies of their finances. The other is free spirited or doesn’t understand the value of the dollar. When financial hardship strikes this can cause unnecessary stress in a relationship.
By entering into a prenuptial agreement, gives a couple to lay all of their cards out on the table. All of your assets such as investments, cash, retirement accounts, etc. Also, it forces you to talk about the debts you may incur such as your student loans or pesky credit card debt.
The benefit of talking about these uncomfortable items now rather than later is that you can formulate an action plan so that you can conquer your finances. Rather than letting bad habits snowball into catastrophe.
2. Lay Out Framework Just in Case You Separate or Divorce.
This is extremely important if you plan on having children because they’re going to be the ones who will be most affected if you and your partner decide to go in different directions. By talking about how you want to handle the situation while you’re still in a committed relationship definitely will make things easier just in case you become part of the 50% of Americans that end up divorced. Plus, it helps to plan out an escape plan while emotions are controlled compared to when they’re flying high.
3. Makes You Have an Uncomfortable Conversation.
Marriage is one of the most if not the most difficult journeys you will experience in your life. IN sickness and health. For richer and for poorer, you need to become comfortable with having uncomfortable conversations. This will benefit your relationship in the future because when it comes a time you need to bring something up such as losing a job or running of a credit card debt. You’ve already practiced how to be open and honest with your lover.
4. Brings You Back to Reality.
The fact of the matter is that divorce is real. The highs of planning your wedding, going on your honeymoon, and beginning your life will fade with time. This is why it’s important to talk with your future spouse about the consequences of what would happen if you were to split. It’s a real possibility, but by entering into a prenuptial agreement you will have already had that difficult conversation. And ultimately that will strengthen your relationship so that you don’t find yourself in the 50%.
Your Guide,
Joshua Krafchick, “ The Unconventional Money Guy”
