I had the privilege of contributing to another Wall Street Journal article this year. (Click here for the previous article).
Prenups are no longer just about protecting assets, it’s also about shielding debt:
Prenups are becoming more common among younger couples. And the contracts aren’t just about protecting individual assets and divvying up property in case of a divorce. More young adults also are using prenups to shield themselves from a partner’s debt and to even the field when one spouse shoulders the financial burden early in the marriage.
The contracts help young couples have a frank talk about their finances, which often aren’t discussed before marriage, says Gabriel Cheong, a divorce attorney with Infinity Law Group in Quincy, Mass.
“You want to be secure in the idea that you did this so long ago that you planned for your future out of love, rather than out of hate when you’re getting a divorce,” he says.
Since more and more people are starting their own business in a down economy, business investors and partners are requiring that their partners sign prenups before getting married to protect and business.
Many young adults, unable to find a job after graduation or laid off because they were the last hired, are returning to school. And that usually means taking on more debt. Mr. Cheong says he often sees situations where one spouse works full-time — and supports a young family — while the other goes to school full-time.
For the full article: Saying ‘Yes’ to a Prenup