Relationships

Prenups Are NOT Just For The Rich & Famous, See Why You May Actually Need It Before You Say “I Do”

The festive season is a wonderful and romantic time to be engaged, and the Christmas gift of an engagement ring may mean a wedding in Spring. Wives-to-be determinately look forward to planning weddings and relishing bridal showers before the big day. You should also think about important financial planning during this heavenly time. Not one person plans a wedding while thinking of divorce, but getting a prenuptial contract may be a thing you will want to include on your “to-do” list. The discussion might be uncomfortable but essential, particularly if one of you has assets such as a business or inherited cash or realestate. It will help the both of you decide how you would want to split stuff in case of divorce or death of a partner. Think of these four questions before you get married.

Is Your Spouse in Debt?

Finding out about your partner’s money habits can save you a lot of anguish in the future. An open and truthful conversation can save your credit-rating. A prenup can keep your partner’s debt in their name.  Ask if they have unsettled debt, if they do, ask how much they owe. With the guard of a prenup, you will not be held accountable for your partner’s future debt if they take out and max out numerous credit cards after the marriage.

Do You Have a Business?

A prenup prevents state laws that give your partner half of the earnings or assets you may have acquired during the marriage. A prenup also stops state laws that may give your partner 50% ownership in your business. You can manage the result of a divorce if the marriage comes to an end by using a prenup to stop those laws from applying to you.

In the event of a possible divorce, a prenup guarantees that you retain your own business interests. Which is vital if you own a business going into the marriage or if you start a business after the wedding.

Are Your Assets Complex?

Complex assets involve more protection. Family businesses and realestate are some good examples of interests that may require attention. If there’re discrete things in your name that you may need to protect in the event of divorce, then you should probably consider a prenup.

Are You Moving to a Different City/town?

State laws regarding the splitting of assets in a divorce can vary, and moving over to a new state can put assets at risk that you never thought would be divided in a divorce. A prenup can defend those assets.

For instance, a state such as New York is a ‘separate property’ state, whereas a state like California is a ‘community property’ state. Identifying the difference between those state laws points out a real need for a prenup to guard your assets.

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