Prenups are some of the most misunderstood and underutilized family planning documents. To some people, they signify potential doom, which is likely why they get a bad rap. The truth is that a prenup is useful in planning and managing your finances throughout the marriage.
Financial issues are among pertinent matters during and after marriage. In the unfortunate event of a divorce, a prenup will ease property division since everything will be well documented. That said, what exactly should you include in your prenup?
Your assets and debts
Premarital property is not considered part of the marital estate and is therefore not up for division following a divorce. It is necessary to capture all premarital assets and financial liabilities to prevent a mix-up later.
If you have children from a previous relationship, it is advisable to include them in a prenup agreement. Doing so will ensure their property rights are defined and protected in the event of a divorce.
Saving and spending strategies
It is often necessary to have a formal arrangement for how finances will be handled in the marriage. This includes spending allowances or how joint bank accounts and savings will be run.
Having a provision for the amount of spousal support payable is very important. That way, you can make long-term financial plans without the uncertainties of your financial situation post-divorce.
Protecting your interests
Nobody wants to think about divorce when they are planning on getting married. However, you should not be blinded by the moment. Having a prenup will save you a lot and give you peace of mind that you can have a soft landing if things don’t work out. Before signing that prenup agreement, however, ask yourself one question: Are your interests secured if you decide to go separate ways with your spouse?