An even less romantic thought it that of the pre-nuptial agreement.
However, as more marriages occur later in life; after the death or a spouse or after a first divorce - there are important considerations of ...Yours, Mine, Ours.
I have written previously about pre-nuptial agreements (go to my website www.attorneybarbaradalvano.weebly.com and click on the sidebar – prenuptial agreements) I emphasize that such an agreement should not be entered into lightly.
A prenuptial agreement is binding in courts of law and one would be wise to have an attorney review the pre-nuptial document before signing.
It is recommended that both parties to a pre nuptial agreement have their own attorney.
In addition to the presence or absence of a pre-nuptial agreement, there are other considerations for couples, whether it is a first marriage or not.
Important elements to consider - before that walk down the aisle:
1) Talk about finances with your spouse to be.
Do you both agree on how to handle the day to day expenses of a life together?
What are your lifetime financial goals?
Will there be budgets in place?
Is one of the couple bringing large outstanding debt to the relationship?
Have all taxes been filed?
Are there substantial assets that one partner might choose to retain e.g. a vacation property, a boat, an antique car collection?
Are there business obligations- e.g. being a ‘silent’ partner in a failing business venture?
How will children, adopted children, step children be financially supported?
Are there special needs children from a former marriage?
Are there aging parents who require financial support?
Are there alimony payments to be made that will come out of the budget?
An open and frank discussion before marriage is better than ‘surprises’ at the beginning of your life together.
2) Set up wills and Powers of Attorney.
If you have an old will, review it. Update all former power of attorney documents.
Upon marriage, you may decide to make changes to some of the information.
3) Review all beneficiary forms and pensions and IRA’s.
Also review the documents of all your financial institutions – including the access to safe deposit boxes.
4) Now might be a good time to decide who will be responsible for the day- to- day payment of bills. Will there be joint or separate accounts?
Take stock of all credit cards and see if there is ‘overlap’ ; for example do both partners require the same credit card account or should it be a joint account?
Remember to discuss outstanding credit card debt and any other personal debts and how those debts will be handled going forward.
Are there auto lease agreements? College tuition for children? Has either party co-signed a loan? Is one partner a party to a legal action, for example bankruptcy? Back child support?
5) Take stock of all valuable collections, for example art.
Will the collection ‘fit’ your life together?
Should the collection be sold prior to marriage?
Are there outstanding loans against valuable art collections?
You will probably agree that all of the above is not a very ‘romantic’ conversation.
An estate planning attorney can advise and act as an objective person to ask the questions and put an estate plan in place as a new couple. This is also critical when there are young children from a previous marriage.
In planning your “To Do” list together, the opportunity to reach agreement is better than difficult discussions or surprising disclosures after you say “I do”.
Note: If you own your own business it is very important to consider a pre nuptial.
You may believe that the business that you started before your marriage cannot be part of a divorce settlement. You are wrong.
There are many instances where the increased valuation of a business is taken into account by divorce courts.
Consult an attorney if you have any questions, before you say "I do".
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