As exciting as marriage is, it can also be quite nerve wracking. As the date of tying the knot gets closer, you likely have several questions running through your head. If you are concerned about money, property and finances, then it is time for you to consider the benefits of a prenuptial agreement, commonly referred to as a prenup.
A prenup is not as scary as it might sound. It does not have to be a selfish gesture void of romance. Continue reading to determine whether a prenup is right for you.
1. Marital property
Once you get married, much of what you acquire during the marriage will qualify as marital property. This means some of your belongings will be subject to property division in the event of a divorce. While you likely are not planning for divorce, it is a smart thing to prepare for the worst. You can also waive death benefits or spousal support if you wish.
2. Credit and debt
Do you know the credit report of your soon-to-be spouse? Does he or she know yours? What about debt? Consider issues of joint credit, taxes owed and how you will deal with debt. While it may not be the most exciting conversation to have before marriage, you should both decide what you will do about credit and debt now instead of later.
3. Premarital assets
You should consider how you will handle premarital assets and debts during marriage and in the event of divorce. While this may seem simple, sometimes complications can pop up. For example, what if one of you uses premarital assets to purchase a home you will own together? What if one of you uses premarital property to pay off the other’s student loans?
At the end of the day, it is up to you and your partner to decide on a prenup. If you need help, consult with a family law attorney.