It’s great if you’re thinking about getting married. Married people are frequently the happiest people. Modern marriage when it comes to financial aspects, however, can be a minefield for many couples.
In America, the number one cause of divorce today and the number one thing that couples fight about is MONEY. When your marriage is facing financial stress, it is facing one of the most formidable enemies of your marriage. More people split up over that than anything else. Bankruptcy and divorce are best buddies, they hang out together and all the stats tell us that for so many years.
Thus, it is appropriate to protect your individual assets and money when entering a new marriage. Here the ways to financially and legally prepare for new marriage;
Normally, separate debts would legally remain separate. But once things start to get commingled together, that’s one thing that a premarital agreement can do. Premarital agreement helps keep those things separate. You want to protect each other from being responsible in any way. A premarital agreement if it’s done properly can protect you from being subject to your spouse’s debt that you normally would be responsible for.
Premarital agreements have some special recognition under the law where post-marital agreements don’t. But things and circumstances may change. Sometimes a married couple might agree to re-arrange things to protect each other from debt, to get tax advantages or any subject related to finances.
Post-marital agreement is a marriage contract entered into between married spouses after the actual marriage. The law permits parties who are contemplating marriage or who are already married to enter into a domestic contract governing certain aspects of their relationship. This contract during marriage can be quite reasonable. Circumstances for example if one of the spouses is about to inherit some money and they might be intending to put some of those funds into the matrimonial home. Another circumstance is that of the family cottage.
How do you that?
The law says that as long as an agreement is recorded, like your deeds with the County recorder, everybody is put on notice and you put a provision in there, can protect your financial assets.
Most people think of prenup is only involving assets, but really it’s much more than that. You can see people in pretty modest situation where one spouse might have modest assets and the other one might have no assets. It can be very important for both of them to protect the person who has some modest assets from being sued on the other person’s debts.
Protecting your money and assets before getting married doesn’t have to be about not trusting each other. It can just be a plan for how your marriage is going to work financially.