Millennial Money: Do you need a prenup?

abcnews.go.com:

There’s a common misconception that prenuptial agreements are only for protecting the assets of an ultra-wealthy person from their spouse, but they can do much more

Prenuptial or premarital agreements, often called “prenups,” have a reputation for being a tool the ultra-wealthy use to protect their assets. But as marriages have evolved, so have prenups — and they might have more uses than you think.

Prenups can give couples an opportunity to communicate about their finances and establish a clear framework for the division of property and responsibilities in case of separation, divorce or even the distribution of one partner’s estate.

True, it’s not very romantic to prepare for the worst while you’re in a state of premarital bliss. However, marriage is one of the most significant contracts you can enter, and legal proceedings such as divorce and probate can be so costly and time-consuming that a prenup may be better to have and not need than to need and not have.

Prenups can ensure that you, your partner and even your children are in the best possible financial position no matter what happens. Here’s how to know if you need one, could benefit from one or may want to consider a different option.

NOT ALL MARRIAGES ARE CREATED EQUAL

If you’re inheriting a family business, have children from a previous marriage or are entering a marriage with significant debt, a prenup can give both partners — and their families — peace of mind. These conditions don’t mean the marriage is more likely to end, just that the stakes are higher and more parties could be affected.

Prenups can make a more significant difference in states with community property laws. For example, in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas,