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Why wealthy families may want to encourage prenups

Property Division Issues

Parents in some wealthy Georgia families might want their children to draw up prenuptial agreements when they marry. However, children may not always agree with this action. Therefore, it is best if people have this conversation with their children when they are young adults and even teenagers.

Introducing the idea of a prenup long before a future spouse is in the picture makes the prenup about preserving family wealth and not about the particular person. It also gives children the opportunity to learn more about the family wealth. Disclosure is one stage of creating a prenup, and in families where the issue has not been discussed previously, this could be the first time that a child learns about the full extent of the family wealth.

Parents may also be able to frame the conversation as being about preserving wealth for future generations. They may want to remind their children that they want to be sure that their own kids will be able to inherit the family money instead of ex-spouses taking a significant amount of it in a divorce. If parents are unable to persuade their children, they might want to create a trust to protect the assets.

If people who are getting a divorce have a prenuptial agreement, it may make the process of property division less complex. However, prenups are still vulnerable to challenges. If these documents are not prepared correctly or address topics, such as child custody, that are outside the bounds of a prenup, or if one person did not get sufficient legal counsel, they could be declared invalid. If this happens, or if there is no prenup, a couple must either negotiate the division of marital property or proceed to litigation. Some couples prefer to try negotiation first since this gives them more control over the outcome.

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