While it is not a subject loving couples are in a hurry to discuss, it is crucial that you and your partner talk about finances before getting married. You may even consider implementing a prenuptial agreement to help with asset division in case of divorce.
Prenups can benefit a marriage in a number of ways, particularly by getting you and your partner on the same page financially. If you are curious about these documents, this guide explains a few key basics.
How do prenups work?
Prenuptial agreements lay the foundation for asset division should a couple divorce in the future. Each person lists their assets going into the marriage, which they get to keep in the event of divorce. On the other hand, couples split shared marital assets fairly and equitably based on the circumstances of the marriage and how long it lasted.
When should you create one?
It is important to bring up a prenuptial agreement well before your wedding takes place. Your spouse can challenge the timing of the agreement if you introduce the idea immediately before the wedding, as they can claim coercion led them to make a decision. Check the laws in your state to determine whether there is a specific deadline regarding prenup creation where you live.
Is there anything you cannot include?
You cannot include any clauses related to child support, as the court overseeing your divorce will set these terms. You also cannot claim any assets from your spouse that they earned prior to the marriage. State laws are another factor, as each state has unique guidelines on what makes a valid, legally binding prenup.
Many couples shy away from prenuptial agreements out of fear that it will affect their relationship with their soon-to-be spouse. However, it is crucial for couples to have discussions about their finances before a marriage takes place, and drafting a prenup allows you to do just that.