Contrary to common belief, prenuptial agreements (aka premarital agreements) are not just for wealthy tycoons and celebrities deemed most likely to divorce. While legal agreements of this type are commonly used to protect the assets of a wealthy individual prior to entering into marriage, there are several other reasons where such an arrangement can offer one or more benefits to us mere mortals, too.
A prenup is a legally binding contract between two people that is established before entering into marriage. It essentially spells out the disposition of your assets when the marriage terminates, either through death or divorce. Quite often, though, prenups are used to avoid potential conflict during a marriage. For example, people use an agreement such as this to clarify how all finances will be handled once they tie the knot. Some prenups even specify the type and frequency of sexual relations agreed upon in advance. That doesn’t sound like a recipe for a happy marriage! But really, just about anything can be included in a prenup.
So who should consider a prenup?