Certain scenarios render prenuptial agreements, also known as marital contracts, more beneficial for engaged couples. Complicated personal circumstances can make divorce more challenging to navigate and can leave a variety of resources potentially vulnerable. For example, people who are about to get married a second time may want to consider drafting prenuptial agreements as a means of protecting themselves.
Why are those preparing to remarry more likely than those getting married for the first time to benefit from a prenuptial agreement?
1. A larger pool of assets
Remarriage may occur much later in life than a first marriage. People who have had more time to establish themselves have more resources to address if they divorce. A prenuptial agreement makes it possible to designate assets acquired prior to marriage as separate property and to clarify what should happen to marital income and resources in the event of a divorce.
2. A higher risk of divorce
When looking at overall divorce rates, prior divorce is one of the most important considerations. People who previously divorced are more likely to get divorced if they marry a second time. Those with two prior divorces have an even higher divorce rate for third marriages. Given the increased risk of divorce, taking common-sense steps to streamline the divorce process and limit exposure during divorce can be a smart decision.
3. Concerns about stepchildren
Combining two families into one unit comes with a variety of challenges. The expectations of stepchildren can easily become a complicating factor during a divorce. Stepparents may want to provide clear explanations regarding what, if any, support or inheritance they intend to provide for their stepchildren. Clarifying those financial concerns prior to marriage can reduce the likelihood of conflict about family finances during the marriage, disputes in the event of a divorce and probate conflict after an individual dies.
Negotiating balanced and appropriate terms for a prenuptial agreement can be a smart decision for those getting ready to marry for the second time. A marital contract takes much of the risk out of remarrying and can even help spouses clarify their expectations for one another and the marriage ahead of time, leading to a more peaceful marital relationship.