If you are getting married soon, one important thing to think about is a prenuptial agreement, especially if one or both of you are bringing significant assets to the relationship. While this is not the most fun thing to think about in the flurry of wedding planning, it is a crucial step to take in order to protect your wealth. The following are some questions to think about when deciding whether or not to get a prenuptial agreement:
Who is Responsible For Financial Issues?
If you are bringing in a lot of money into a relationship which someone who has financial difficulty, you need to think about whether or not you will be held accountable for them as well. In general, the debt of your partner will be his or her responsibility since it was established prior to the wedding. However, community property states have rules in place that say if the partner defaults on a debt, the creditor can come after your assets to settle those debts. A prenuptial agreement can prevent a situation like this. You would need to specify in the agreement that any money and property belonging to you is your own separate entity. This will keep your spouse's creditors from attempting to settle the debt using your money.
What About Property Acquired Before Marriage?
Certain property, such as a home or a retirement plan, should be protected with a prenuptial agreement if you hope to keep it all should your marriage end. If you do not wish to go through with a prenup, you may still have a way to save your properties post-marriage. If you separate, you can prepare an agreement that you will both have to approve stating who owns what within the marriage. This is helpful only if you both agree on the terms and you are not in a community property state.
What About Assets and Child Support?
If your spouse has child support payments that he or she pays to a former spouse, a prenup can be beneficial for you in this situation. In this case, it would help you during your marriage, rather than after, because some states will require a change in the amount of child support payments based on household income even if you do not share your money. If you live in a state with these rules, a prenuptial agreement can keep your money safe from the former spouse of your partner if he or she decides to come after your money.
If you believe that a prenuptial agreement would be beneficial to your relationship, discuss it with each other well in advance of the wedding. Talk calmly and rationally and explain the benefits of such an agreement to your relationship. If your future spouse is not fully on board, consider consulting with an attorney such as Maury K Cutler to get additional information.
Share30 August 2016
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