If you are thinking about getting married and want to have a plan in case things do not work out, then a prenuptial agreement will help you to have a smoother divorce and provide insight into your financial strength as a couple. Although it may be difficult, it’s important to talk openly about your finances with your partner prior to getting married. A conversation about finances and assets early on in the relationship can help you avoid the financial stress often associated with divorce. We have included some basic practices below that will help you start the conversation and guide it toward topics that protect both of your financial security.
Prior to getting married, you and your partner can record your assets and liabilities so that you have a clear vision of the financial assets and debt you are both bringing into the relationship. Often times, couples combine credit cards or accounts in order to support one another and in some cases add a partner’s name to a property title, which creates shared responsibility. Prenuptial agreements help to iron out some of these problems before they arise.
Talk About Money
Couples shy away from talking about finances and prenuptial agreements because they falsely believe it takes away the romance and shows doubt in the relationship. These conversations are important for the long-term financial health of both partners. Although emotional barriers might make this conversation difficult, but you can always tell your partner you are looking after the financial health of both individuals and you want to have a more equitable and trusting relationship.
Decide on a Prenuptial Agreement
Although some people may decide they do not need a prenuptial agreement, you and your partner might want to take stock of your assets and debt before making that decision. For example, you can look to see if either of you have assets like a home, stock or retirement funds, ownership in part of a business, inheritance, or if one of you is wealthier than the other. It is important to protect these assets for each individual in the case of a divorce, but to also make sure that if one of you has a significant amount of debt that it does not become a shared responsibility.
You might already be thinking about drafting a prenuptial agreement, please do not hesitate to contact Ayers Family Law, LLC. We have family lawyers who are ready to give you more information about prenuptial agreements and help you find one that fits your needs.