There is a mistaken perception that only the rich need prenuptial agreements. These agreements do more than keep a well-off spouse from getting taken advantage of, however. Read on to find out why you should take some time away from your wedding preparations to speak to a family law firm—such as Scott & Scott, PC—for advice about creating your own prenuptial agreement.
Focusing in on Finances
When you imagine what might go into a prenuptial agreement, you must remember to stick to financial matters exclusively. Fortunately, once you abide by that rule, you are free to include almost anything in your agreement—and it can be worded anyway you want. The very act of creating a prenuptial agreement serves as an important meeting of the minds for the couple that will be sharing their lives with each other. Whether you have discussed financial matters already or you have yet to broach the subject, the creation of a prenuptial agreement will require you to think about and agree upon what matters most when it comes to finances.
Points to Consider
Financial issues can be complex, but most married couples must deal with the below matters. Take a look at this list and consider how you might want to make them more transparent with your spouse-to-be:
Debt – Most people have already incurred some debt by the time they get married. Student loan debts, credit card debts, and even mortgages are common forms of debt that the parties might carry with them into the marriage. The debt you hold on your wedding day is yours alone, so be sure that your spouse knows about your debt load and include your debt balances on the prenuptial agreement.
Property – Just like debts, property owned by one party remains their property regardless of marriage or divorce. Unfortunately, some couples end up commingling their property. Commingling means that a certain asset, such as a bank account, becomes entangled when both parties begin to own it. If your spouse ends up depositing funds into your personal saving account, that account is commingled. If the funds are then used as a down payment on a home for the couple, the situation is further muddied. Be sure that this issue is addressed beforehand using a prenuptial agreement.
Budgeting – When you sit down and come up with a budget, you are heading off problems in advance. Your prenup can contain some basic budgetary tenants to guide you going forward. While financial needs will change, the prenuptial agreement can set up a basic framework for how you want your money to be spent. One of the most important components of this framework should be a savings plan and how you want to use those funds in the future.
To learn more, speak to your family law attorney.