What to Know About Military Prenups

Just like our country, your future is worth protecting.

Even if you don’t have money today, you likely will in the future. And the only way to protect that? A prenuptial agreement signed BEFORE you get married.

Understanding the need for a prenup is crucial, especially within the military community since it enables military couples to establish clear guidelines for property, including real estate, bank accounts, retirement funds, inheritances, and more. In addition, adding other clauses, such as life insurance requirements, health insurance provisions, death clauses, and infidelity clauses (state depending) can be useful for the military community. Let’s dive into the key benefits of prenups for military couples and much more below.

Key Benefits of Prenuptial Agreements for Military Couples

A prenup allows couples to establish parameters for alimony, also known as spousal support or maintenance. This may involve setting limitations on alimony payments or waiving it completely, providing clarity and predictability for military couples, where one parent often stays at home.

Prenups foster communication and alignment of goals within military relationships, The process of drafting a prenup encourages open dialogue about financial matters and future plans, facilitating a deeper understanding of each other’s perspectives and priorities.

A prenup for military service members and their spouses serves as both a practical safeguard for financial assets and a mechanism for enhancing communication and mutual understanding—a vital form of “marriage insurance” tailored to the unique circumstances of military life.

Tailored Clauses for Military Life in Prenups

Confidentiality Clauses
Separate property (i.e., retirement protection)
Death clause
Health insurance provisions
Life insurance provisions
Infidelity clauses

Importance of Prenups for Younger Military Couples:

Military couples, often marrying at a younger age due to the support and benefits available, such as housing allowances and deployments, need comprehensive planning.

Despite starting with minimal assets, prenups protect current and future assets like inheritances and property acquired over time. They also address debt allocation, which can be important given today’s prevalence of student loans.

Prenups offer versatility beyond asset protection, with clauses covering life insurance, health insurance, pet custody, and more. For example, incorporating life insurance provisions into prenuptial agreements ensures financial security for loved ones in unforeseen circumstances.

Protecting Assets & Separating Debt for Military Service Members and Their Spouses:

One of the most common uses for a prenuptial agreement is asset protection, which can be critical for any couple, including military couples, navigating the complexities of modern relationships. Assets can encompass various items with economic value such as bank accounts, real estate holdings, retirement funds, cryptocurrency, credit card rewards, and more. Additionally, future inheritances can also be safeguarded through a prenup, as they represent forthcoming assets. By delineating which assets remain separate property, a prenup ensures they are not subject to division in the event of a divorce, thereby offering comprehensive financial security for both partners.

While some couples may not have significant assets, debt can still be a substantial concern, especially considering factors like student loans—a common burden for many millennial and Gen-Z-aged Americans, including military couples. A prenuptial agreement can offer vital protection against absorbing a partner’s debt. Without a prenup in place, there’s a risk that a court could allocate a portion of the borrowing spouse’s debt to the non-borrowing spouse—a potentially alarming outcome for many. Therefore, for military couples grappling with financial obligations, a prenup serves as a proactive measure to safeguard against unexpected debt liabilities.

Life insurance & Health Insurance for Military Couples:

Life insurance is more than just a financial tool—it’s a vital means of ensuring security for your spouse, especially crucial for military couples facing the risks of service life. While contemplating mortality may seem daunting, it’s a reality that warrants thoughtful planning, particularly in high-risk professions like the military.

Including a life insurance clause in a prenup offers peace of mind, it requires that each spouse maintain a life insurance policy that mandates a lump sum payout to beneficiaries upon the policyholder’s death. For military couples, it serves as a crucial safety net, covering expenses like funeral costs, medical bills, and ongoing living expenses.

In prenuptial agreements, integrating life insurance provisions reflects a commitment to your partner’s well-being, even in unforeseen circumstances. HelloPrenup offers customizable options for military couples to tailor agreements to their unique needs, ensuring loved ones are adequately protected.