People often think of prenuptial agreements as a way to protect their assets. They do not want to lose money to a spouse if they get divorced. They see marriage for the legal contract that it is, and they are wary of the financial ramifications of ending that contract. However, can you also use it to help you avoid extra debt?
For instance, maybe your future spouse is planning to go to medical school. You both just graduated from undergrad and decided to get married. For you, that’s the end of student loans; you plan to get a job and start your career.
Your significant other, though, plans to enroll in medical school after the marriage, and they have no way to pay for it themselves. The plan is to take on around $200,000 in debt. It sounds like a lot, but you see it as an investment in the future.
Now, you don’t plan for your marriage to end in divorce, but your fear is this: Your spouse will take out the loans, go to school, graduate, ask for a divorce and leave you with half of the cost of their education. Can you use a prenup to prevent it?
You can. Debt is often one of the hardest things to litigate during a divorce. You only make things easier for yourself if you put it all into the prenup in advance. You know you won’t have excessive debt if the marriage ends.
As you can see, prenups may be useful in ways you didn’t realize. Make sure you carefully consider all of your options.