Even if you never thought about signing a prenuptial agreement the first time you married, it’s wise to consider it now, because marriage is often more complicated the second (or third or fourth) time around. You may have more assets now, or you may own a business or have children to protect. And because you’ve been through it before, you may be worried about the financial consequences of divorce or widowhood.
A prenuptial agreement can ease your mind by spelling out what assets and liabilities each partner is bringing into the marriage, and by determining how money or property brought into the marriage or acquired during the marriage will be divided if the marriage ends either in death or divorce.
A prenuptial agreement addresses some or all of these points:
- Assets and liabilities:
- What assets are you each bringing into the marriage?
- How much are they worth, and who owns them?
- Which ones will become marital property, and which ones will continue to be owned individually?
- Will gifts and inheritances be shared or separate?
- What liabilities do you have (e.g., back taxes or other debt)?
- Divorce:
- If you divorce, how will you divide assets brought into the marriage or acquired during the marriage?
- Will either spouse receive a lump-sum cash settlement or alimony?
- Estate planning:
- What will go to your children from previous marriages?
- What will go to children you have together?
- Special contributions of partners:
- If one spouse contributes to the marriage in a special way (e.g., limiting his or her career for the benefit of children or the other spouse), will that spouse be provided for?
- What if one spouse brings more liabilities to the marriage than the other?
Because it’s difficult to write an ironclad prenuptial agreement, don’t try doing it yourself. Instead, you and your future spouse should hire separate attorneys to help you negotiate an agreement that will protect your financial interests without causing mistrust between the two of you.
If you have questions, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
