For many people in Colorado, prenuptial agreements have long been considered the domain of celebrities or those with significant generational wealth. However, as people marry later in life with property, children and established careers, a growing number of people are interested in a document that could provide legal protections and a structure for asset division in case of divorce. One study conducted by the American Academy of Matrimonial Lawyers found that 62% of family law attorneys reported increased requests for help negotiating a prenup.
A prenuptial agreement has long been a common choice for people with inheritances, especially if they are involved in the family business. While inheritances can be protected from a divorce in other ways, a prenup can make the issue clear, especially if a family's legacy may be on the line. However, prenups can also be helpful to other types of business owners. In fact, many angel investors may even require documentation of a prenuptial or post-nuptial agreement before sinking capital into a privately held company. After all, the company itself could be torn apart or sold in a divorce without an agreement about how the firm will be handled, leading to significant losses. A prenuptial agreement may be important not only to the business owner but for the company's own protection.
People may also want to consider prenuptial agreements as an addition to their estate planning process, especially if they are creating a blended family. Through a prenup, both partners can lay out how they intend to divide their assets at death, particularly if they want to ensure their children are protected.
A prenuptial agreement does not have to be adversarial; it should be designed and negotiated to protect both parties in case of divorce. A family law attorney may help a client develop a fair prenup that addresses key concerns.