P is for Prepare that Prenup

Perhaps preparing a “prenup” isn’t the most romantic subject to address during your magical time of love, promise and a lifetime commitment. However, we shouldn’t bury our heads in the sand when half of all marriages end in divorce. Having a 50/50 chance of success are not the odds you would likely want to take with your finances, yet in a way you are doing just that without a “prenup”.

Marriage is all about loving and honoring your mate in every aspect of your new relationship. In order to do this fully you should know who you are marrying financially. Take the time to put a plan in place that includes full disclosure and transparency regarding both of your financial wishes and needs. This step may help avoid unnecessary money issues down the road and may help your relationship thrive year after year.

A prenuptial agreement can then serve as an insurance policy for each party should the marriage end. This contract should help alleviate the guess work and provide a clearer picture of what to expect should the marriage fail. The “prenup” may include predetermination of what assets are marital and what assets are not marital, as well as create a list of divisions for these assets. It can also include terms of alimony and spousal support or the waivers denying ongoing support. Keep in mind that it does not cover all issues, for example child support cannot be determined until it becomes necessary. The requirements for a prenuptial agreement vary from state to state; contact your attorney for advice and details. By planning ahead, you may alleviate the emotional and financial costs associated with a divorce should this occur. The “prenup” can serve as a step to prepare you for an open and honest lifetime of peace.
Answers from A to Z

About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™).If you have comments on this post contact Ann Zuraw

, , , , , ,