In current times, couples are getting married much later in life. Due to the later age, they are often bringing into a marriage a variety of assets and debts. Although a prenuptial agreement carries negative connotations, it is actually a very useful and beneficial financial planning tool for your marriage, and life together as husband and wife.
Oftentimes marriages fall apart based upon financial miscommunication. A Pre-Nuptial Agreement is an excellent way to assess financial circumstances and lifestyles prior to getting married. Having all the information helps couples work together when it comes to the finances, rather than come across issues later in the marriage.
For example, what if one partner is more focused on saving for the future and retirement planning, whereas the other spouse believes in vacations and trips periodically, rather than putting the funds into savings. This can be accommodated in a Pre-Nuptial Agreement by keeping certain funds separate for a spouse’s own personal use, and some funds in a community account to allow for joint expenses and decisions. This can help avoid future arguments about how each spouse chooses to spend certain funds.
What about children’s college expenses? A Pre-Nuptial Agreement allows for the spouses to have a discussion regarding how they plan to save for future children, and college expenses. How much would be set aside each month, what vehicle would be used to grow the funds and invest, and how much would each spouse be contributing. Again, having this discussion prior to marriage gives you a clear picture as to the other person’s intentions and financial goals, as well as helps address it before it becomes an issue.
In fact, a Pre-Nuptial Agreement is a great way to open the door to all financial discussions that could potentially become issues during the marriage. It gives the spouses a good idea as to assets each partner holds, and what debts they may have. This way, both parties enter the marriage fully informed as to all of the assets and debts that the marriage may have and if there are any issues or concerns they can be addressed beforehand.
There may be certain funds or inheritances that one spouse believes should be strictly their own to do with as they wish. A Pre-Nuptial Agreement would help solidify that, but more importantly, it would inform the other spouse of your intentions.
What if there is an expensive hobby you have, or interests that has always been something you have taken part in. The marriage is not a reason for you to stop, but it is certainly a good idea to discuss it with your partner so that you both are aware of the costs and expenses it may use during the marriage.
Having a Pre-Nuptial Agreement is an excellent way to have an open and informed discussion with your partner regarding financial circumstances and lifestyle. It allows for both of you to understand the other’s financial perspective, and review each partner’s assets and debts. Having this discussion and knowing each person’s perspective serves to help avoid arguments during the marriage. Financial issues are a significant cause for the breakdown of marriages. Fortunately, a simply and effective tool, like a Pre-Nuptial Agreement, can help avoid that altogether.