Are Prenuptial Agreements Unromantic? Six Tips of Why to Consider Signing One
Considering a prenuptial agreement before getting married may seem unromantic, but considering such an agreement can mean that both parties are entering into a marriage with their assets protected. It helps simplify matters, so a couple can just focus on being together as opposed to the always messy aspects of finances. If you’re considering a prenuptial agreement, here are a few tips regarding your own prenuptial agreement:
Consider your starting circumstances.
Rather than just taking into consideration your relationship at this time, look at both yours and your future spouses financial situations before you met. This should provide you with a good grounding of both of your earning potential through the course of a marriage. When you have a joint account, obtain as detailed history of deposits as possible and see who has been responsible for what; this will provide you with advisable of what each of you contributes over the course of a relationship, as opposed to the immediate status quo.
Get a lawyer.
This may seem simple, but particularly in difficult economic times, many couples are writing prenuptial agreements between themselves without consulting a lawyer for advice and legal recognition of the agreement. While an item of paper signed by both parties may be considered during a divorce hearing, it is unlikely to be adhered to absolutely, which does render the exercise somewhat pointless. Legal backing will protect all.
Set provisions for divorce.
Along with the basic ‘who gets what ‘, consider more complicated matters. For example, if the wife will leave work to bring up children, how will she be provided for financially in case of divorce and for how long will such provision last?
If you intend to have children, take them into account.
If both parties are independently wealthy, set something in a prenuptial agreement which decrees the utilization of funds for any joint children. For example, college and education costs; who pays what in case of a divorce.
Consider past history.
A prenuptial agreement is not just about the two couples; oftentimes, issues such as stepchildren must be factored in. If by marrying you are creating a step family, what will happen to that relationship between step parent and child should the marriage break up? Although any visitation rights are not legally binding, it could be worthwhile discussing the issue and inserting a clause into your prenuptial agreement.
Rarely does a married couple earn the identical amount of money. When you have some sort of agreement where one party pays the mortgage on a property and the other is responsible for all bills, this agreement needs to stay your prenuptial agreement as an agreed state of play. What happens in case of divorce, considering one of many unions has technically paid nothing toward the house?
A prenuptial agreement needs in all honesty, and take into consideration realistic financial expectations from both parties. Think about things like pay raises, second homes and joint purchases – how will these be distributed in case of a divorce? It is actually best to discuss these challenging issues now, rather than fight for months in a costly divorce battle. The worst may not happened, but it’s always ideal to be prepared in case it does.