Prenuptial agreements set expectations for many relationships as couples prepare for marriage. As you start to plan your wedding, you might consider a prenuptial agreement for your relationship. If so, think about the benefits of including a sunset clause.
The sunset clause sets an expiration on the contract in its entirety or on certain provisions. This has many benefits for couples.
Minimizes pressure
Prenuptial agreements often create feelings of stress and uncertainty. For many couples, a sunset clause dramatically reduces the stress, anxiety and pressure of the contract since it is no longer permanent.
Protects future assets
For couples anticipating significant changes in assets or wealth throughout the marriage, a sunset clause ensures that any future acquisitions remain exempt from the prenuptial agreement’s terms unless otherwise agreed. Couples can modify those elements at the time of expiration or allow the contract to end entirely.
Minimizes emotional burdens
When one spouse asks the other to sign a prenuptial agreement, this sometimes creates emotional burdens and feelings of resentment. Adding a sunset clause to the contract helps to reduce those burdens and challenges by offering a path to future renegotiation or elimination of the contract.
Protects children from prior relationships
A sunset clause helps couples better protect their children from previous relationships. Renegotiating the terms of the contract after a predetermined period allows a couple to reassess their financial positions and their intentions for inheritance and investment for any children from previous relationships. As finances improve, couples may wish to adjust those commitments, and a sunset clause allows for that.
An increasing number of couples report seeing the value of prenuptial agreements. A study by The Harris Poll indicates that 15% of couples embraced prenuptial agreements in 2022. Before you sign a prenuptial agreement, discuss the provisions of a sunset clause for long-term purposes.