Looking for a good reason to adopt a prenup? We can give you a few. Among them, one is laying a firm foundation on which to build a marriage. Couples who have clear expectations, realistic financial views and the communications skills needed to discuss this topic that is less than romantic are well on their way to an honest and workable union. In addition, if you are too shy or too reluctant to discuss money with your significant other at the start of your marriage, odds are good you will be forced to discuss it with their lawyer in the future.
Don't let this happen to you.
As an adult, you have worked hard for your possessions, for your savings, and for your retirement. So has your partner. A prenuptial agreement is simply a way of ensuring that assets are assigned from the beginning. What belongs to you remains yours. What belongs to your significant other will stay with him or her.
It is not mysterious. It is not a breach of trust to discuss money issues in a relationship -- far from it, in fact; making your fiancé or life partner aware of your expectations early on is a strong and healthy way to build trust and dignity in marriage. If you disagree with this statement, take a moment to consider some startling facts published in Forbes:
- Retirement accounts, stock options and deferred compensation from even previous employers are all fair game when it comes to splitting up the assets in a divorce.
- The annual membership fees to your golf club, country club or yachting club are also on the table.
- Any copyrights you have, any patents you hold, any royalties you earn -- all fair game when it comes time to divvy up.
- Money you've loaned to family members or friends is also up for grabs. If you loaned a sibling $5,000 while you were married, your spouse may be entitled to half when the debt is repaid.
- Air miles, tax refunds, life insurance and burial plots -- these are all investments that become assets when things go wrong.
Divorce is expensive enough without tossing your life's work into the pot. However, that's exactly what can happen if you forego the prenup. In addition, if you have tried and failed to convince your intended just how important this topic is to you, you may want to ask yourself why that is. What is important to you deserves consideration by your significant other.
If you are weighing the pros and cons of having a prenuptial agreement drawn, we can help you navigate this legal area with ease. To learn more, speak with a professional about your finances before you tie the knot.