Marriage is a lot of things: a commitment, a journey, an adventure, a story that unfolds between two people. But like new commitments, new journeys, or new adventures, marriage is also a risk. This isn’t a bad thing, of course. Risks are taken anytime we change and are often wonderful and exciting. Taking “the next step” into marriage with your partner brings with it many changes in lifestyle and status: legal names and emergency contacts need updates; finances must be reworked or reconsidered; the five- or ten-year plans you both made individually now fundamentally include each other. In this way, marriage is a big risk. A prenuptial agreement is a great way to keep the risks of marriage to a minimum.
Advantages of a Prenuptial Agreement
Whether or not you share expenses with your partner before marriage, you most likely don’t have as deep an understanding of their finances as you do your own. But, once married, your finances become a lot more intertwined, with many folks opening shared accounts, co-signing mortgages and other long-term investments, and preparing to start a life together. A prenuptial agreement gives you the opportunity to talk through all these complicated topics with your future spouse and make a solid plan for what your life together will look like. It structures the (often complicated and touchy) conversation of “finances” so that the discussion is easy to understand and less stressful to have.
The point of a prenuptial agreement is to understand how the finances/property of each half of the marriage work together. Both parties are meant to come to the table with an honest appraisal of their assets, as well as how those assets may be applied to (or reserved from) the marriage. Having this conversation up front, before the marriage, makes it easier to address issues that arise down the road. Both partners will thus better understand their collective resources, and there are no surprises (either happy or unpleasant) when it comes to the financials of the marriage.
A Prenuptial Peace of Mind
Additionally, a prenuptial agreement allows for peace of mind. For example, a widow with a prenuptial agreement will be better suited to manage the probate process because the conversation regarding how to handle the assets will have already occurred, and it will not be as stressful to manage the disposition. A prenuptial agreement also allows partners to establish the disposition of their property or life insurance benefits in the case of an unexpected or intestate death, which will help protect the widow during the probate process.
Similarly, a prenuptial agreement can be used to protect the interests of your children or your partner’s children in the event of a sudden death or divorce. When one or both spouses are remarrying, a prenuptial agreement is a great way to discuss how benefits from a prior marriage fit into this new marriage. When one or both spouses have children, a prenuptial agreement may open conversation about what a parent wants for their child in the context of their new marriage. Though Texas does not permit a prenuptial agreement to limit the amount of child support, and similarly forbids the prior determination of child custody in the case of death or divorce, Texas statutes do permit partners to agree in advance about alimony. By allowing partners to discuss and set levels of spousal support in advance, prenuptial agreements make it easier to address the potential outcomes of marriage. It also empowers partners in their individual capacities to know that, even if the marriage relationship does not work out, their children will be protected and provided for.
If it turns out that you and your partner are not suited for a marriage, the separation will be made much easier. There is no need to argue or debate, as you will have already discussed how the assets—and the debts—will be handled. Prenuptial agreements allow the parties involved to assign debts ahead of time. Often, this is used to establish that each partner should, in the event of a divorce, be held responsible for only their own debt. These provisions may cover an individual’s preexisting debt or refer to debt incurred during the marriage. In fully outlining each individual’s assets and debts prior to marriage, the prenuptial agreement allows partners to create a detailed game plan that protects not only themselves, but each other, their children, and their financial investments.
Preparing to Meet With an Attorney
Meeting with an attorney can help in the process of creating a prenuptial agreement. Come prepared to speak openly with your partner and your attorney. In advance of the meeting, make sure to gather documents or information about: your income; your debts; your accounts (including bank accounts, retirement plans, investment accounts, etc.); your assets; and potential future inheritances. Your attorney will make sure all the various aspects of your future together are discussed, so you and your partner can rest easy knowing you have a plan for whatever life throws at you. Marriage is a great adventure, taken with one that you love. With a prenuptial agreement, you can start that journey together well prepared.
Image by Anil sharma from Pixabay
