by Yu Ming Lui

Created on: May 27, 2008

You would think a prenuptial agreement, or prenup for short, only applies to the uber-rich who have millions of dollars to protect. But many people tend to forget that marriage as not just a romantic union of two souls, but it's also the merging of finances.

For older couples, it especially hits home if they have amassed a considerable amount of assets, or a large retirement fun, or if they have children from a previous marriage whose financial well-being they want to protect.

There are many people who still hold the view that prenups spell the end of love and passion. Why think about divorce, even before you walk down the aisle?

A prenup is a contract between spouses that outline the financial plans to be followed in the event of divorce or death. Without a prenup, the state decides how assets and debts are divided during a divorce.

The best advantage of a prenup is it could save a lot of money (and heartache) in litigation if you have everything spelled out clearly, there is nothing much to tussle over, is there? The point of a prenup is to prevent any disputes about financial issues if you break up.

You could also liken a prenup to buying an insurance policy you hope for the best, but just in case something goes horribly wrong, you've got something to fall back on. Another benefit of a prenup: it states which assets a spouse may want to give to children or other family members in the event of death.

Instead of seeing a prenup as a symbol of distrust between two people, it is actually refreshing to be open and honest about money before you slip the ring on. This laying of cards on the table is grounded in realism and not a way to breed suspicion.

Who are the "ordinary" people who might benefit from a prenup? If you own a business or part of one; expect to receive an inheritance; plan to finance your spouse's advanced degree; support your spouse's elderly parents or other family members; expect to have a significant rise in personal income in the future.

As healthy as all this sounds, it's advisable to work out the details, with separate lawyers, even before the actual wedding is planned. Many couples feel pressured to sign prenups that are not to their satisfaction just because the invitations are out and the venue is booked.

Although making any contract smacks of "business", keep an open mind to drawing up a prenup it could be a very positive relationship experience between you and your future spouse.

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