Nothing can kill romance faster than bringing up a prenuptial agreement. A prenuptial agreement, however, is an often misunderstood agreement, and is becoming more and more common. With one out of three first marriages ending in divorce these days, and half of subsequent marriages also ending the same way, a prenuptial agreement is smart financial planning. Remove some of the emotion that's involved by thinking of the prenuptial agreement as a business agreement of insurance policy. Marriage, whether you like it or not, is not just an emotional and physical union, it is also a financial union. A prenuptial agreement helps to ensure the financial well being of a marriage.

A prenuptial agreement is a contract between two engaged people that spells out how their assets are to be distributed in the event of divorce, or death. Such agreements have existed for centuries in one form or another. You don't need to be a Rockefeller to need a prenuptial agreement. A person who has saved as little as $30,000 may be more protective of their nest egg than someone who has millions, because it has likely taken them a lot of work to accumulate that money.

If you have assets such as home, stock, or retirement funds, or may be receiving an inheritance you should consider having a prenuptial agreement. You should also consider having one if you own all or part of a business, if one of you will be supporting the other through college, or if you have, or are pursuing a degree or license in a potentially lucrative profession like medicine. If either of you has children from a previous union, or have loved ones who need to be taken care of, you need to consider an agreement as well.

Approach this subject as early as possible. This prenuptial agreement should not come as a surprise. Let your loved one know that you believe these are important, and that you would like to go over this topic. The discussion must be honest; you need to be candid about why you want the agreement. Hire separate attorneys to ensure an enforceable agreement. A valid prenuptial agreement will not leave one of the parties destitute, and needs not to appear that it has been coerced. This is one reason that such agreements need to be signed well in advance.

Prenuptial agreements can also include responsibilities that do not involve money, but avoid making ridiculous demands such as requiring that your spouse will not gain weight. Some couples will stipulate that your children will observe a particular religion, if you and your future spouse are of different faiths. Know that you cannot waive certain things, like child support payments, and that a spouse's will cannot supersede the prenuptial agreements if the will is stingier. Also, some states require that property acquired during the marriage will be divided equally.