Details You Cannot Afford to Neglect When Arranging a Prenup
Although the subject of prenuptial agreements spark ongoing controversy, the reality is such agreements can offer a range of benefits for both parties involved, should a divorce ever take place. When both parties are open and willing to discuss the potential advantages of arranging a prenup, the outcome can bring great peace of mind and provide a clear, organized game plan in the event the marriage comes to an end.
Key Areas to Address
The purpose of a prenup is to prepare for the management and protection of your assets, especially in the event that you and your spouse have difficulty agreeing on the division of those assets during a divorce. Due to the important nature of the agreement, it is crucial to identify which areas require attention as you begin the process of creating the contract. Some areas every couple needs to address include the following:
Debts - The reason for talking about debts with your future spouse is twofold; you both need to know about any existing financial obligations, and you both will also benefit from being transparent regarding any debts that are in your name before you tie the knot. Make a list of everything, including personal and bank-acquired loans, as well as any debts that may currently be in collections.
Assets - Assets are just as important to discuss as debts, as the subject of marital property can be a touchy one when a marriage doesn’t work out. You need to be clear on what you will do with any property or assets you acquire once you both are married. Should you divorce, will you split those belongings 50/50? If not, discuss any alternative options.
Income - How you and your partner will handle your money once you are married can determine how well you both fare over the long term. You should talk about everything from who will handle the checkbook and how, what savings and spending plans you would like to put into place, and whether or not either party wants to be consulted before any major purchases.
Other Important Details
Taxes, higher education, and business ventures are among the list of other subjects you and your spouse will want to discuss when considering creating a prenuptial agreement. For example, should you or your partner return to college, you will need to know how you plan on handling the financial arrangements. Will you support your spouse while they earn their degree? Should you separate, who will be responsible for repaying the student loans?
Where taxes are concerned, you should know if one person is bringing any existing tax debt into the marriage, or whether or not you both intend to file your taxes jointly once you are married. Any joint or pre-existing business ventures and how they may affect you both also need to be talked about when planning a prenup.
A knowledgeable Kane County prenuptial agreement lawyer can assist you in preparing a solid, thorough premarital contract that protects the best interests of each party. Call Shaw Family Law, P.C today at 630-584-5550 for a personal consultation.