There are a lot of statistics about how millennials are waiting longer to get married or staying in a committed relationship that does not include a plan for marriage. However, love is often unpredictable and can strike before the couple finishes college or graduate school. While students famously live on a shoestring budget and often do not have fulltime employment, it is still worthwhile to consider a prenuptial agreement.
Why a prenup if there are not substantial assets?
Prenuptial agreements generally address the distribution of assets when a couple files for divorce. Typical circumstances involve one spouse coming into a marriage with a substantial income, which can become a marital asset after the marriage. Prenups are also often used for couples who remarry and already have kids as well as financial arrangements or estate plans in place.
Prenups are often about the future
Many believe that prenups are a great idea for young couples. If one or both students are in medical school, getting an MBA or in some other field of study where they are likely to attain an upper income bracket, it may be wise to draft a prenup. Consider the matter of the pending Bezos divorce, for example. It involves a massive amount of marital assets, but Jeff was a Princeton graduate with degrees in computers and engineering. This background would have made it appropriate for a prenup even though he was not yet the richest man in the world.
A prenup can also shield the other party as well. Perhaps the wife to be is taking out a large number of loans to pay for her education. The husband may not feel comfortable with the amount of debt she is accruing and may request a prenup.
The start of an important conversation
Prenuptial agreements are also useful for establishing a marriage’s financial foundation. While the conversation may be an uncomfortable one, discussion of a prenup will lead to detailing expectations each student has going into the marriage. Parents may even want to weigh in on the matter, particularly if there is a succession plan involving a family business that needs to stay within the family bloodline.
Attorneys can provide guidance
An experienced Board-Certified Family Law expert who works in Collin County, Dallas County, Denton County, or elsewhere in Texas, can help guide a student through the process of drafting a prenuptial agreement. These can be as unique as the couple involved, addressing an individual’s or a family’s concerns.