It’s that time of year again! That means plenty of couples are entering 2023 with big plans and new goals. At a whopping 2.5 million, 2022 saw the most weddings scheduled since 1984, according to the Wedding Report – and the trend could very well continue into the new year.
With all this matrimony, our team of attorneys at JUSTLAW is here to encourage you and the one you love to put prenuptial planning at the top of your list for 2023. Think of a prenup as insurance for your marriage that can be specifically tailored to you and your partner AND override any default laws and liabilities of the state. As we discuss in our article on Millennial prenup trends, more young couples are acting toward these resolutions and providing marital security and peace of mind with prenuptial agreements. In fact, a 2018 Bank of America Survey found nearly 28% of Millennial couples are deciding to keep separate bank accounts and forego joint options. While there are plenty of reasons to consider a prenuptial agreement, here are 5 reasons JUSTLAW believes you and your fiance should consider getting a prenup today:
It can actually STRENGTHEN your relationship. You might think this runs contrary to popular belief, but having the important conversation about a prenup with your spouse can make your relationship stronger by forcing you both to address the nitty-gritty details of how you want to deal with your finances and the money you make. As financial expert Suze Orman told CNBC news,
“If you cannot talk money to the person that you are about to marry, you are doomed for failure because money is going to run through your relationship more than anything else . . .”
Avoid issues with “community property.” If you live in states like Louisiana, New Mexico, Texas, Washington, Wisconsin, Nevada, Alaska, Arizona, California, or Idaho, your states default rule considers ANYTHING acquired during marriage – including all debt, including credit card balances – to belong to “both spouses.”
But even if you don’t live in these states, attorneys could still argue that any debts taken on by a couple during marriage ought to be split evenly and paid equally as “marital property” in the event of a divorce. Avoiding these issues entirely with a predetermined contract could save you both quite the headache down the line!
Protect children from a previous relationship. If you are entering your relationship with children from a former one, their needs will need to be considered in your new relationship. For example, your obligations to contribute child support will carry over into your new relationship – and this is another financial obligation you will have to consider with your new spouse. You may also want to help your children pay for other significant expenses like college too – and you will also have to be considered with your new spouse to determine how these expenses will affect your marital estate.
Protect your business if you own one. If you enter your marriage with all the blood, sweat, and tears you put into your business, the last thing you’d probably want is to have it split into pieces if you were to divorce. This is where a prenuptial agreement can come in handy to make sure you maintain control and protect all that you built.
Protect your retirement assets. Any additional retirement fund earnings from the day you are legally married going forward will become “marital” or shared property – unless you create a prenuptial agreement that states otherwise. And if you have a sizable inheritance you want to leave for the kids, a prenup can help protect you and them too.
For example, you can use your prenup to specify that you want you 401(k) assets to be “separate” property and that any contributions you make to retirement accounts during marriage are “separate” if you were to divorce.
You do not need to be a millionaire to stand to benefit from a prenuptial agreement with the one you love. If you’re considering a prenuptial agreement as a new years resolution, contact our skilled JUSTLAW attorneys at 1-888-587-8187 and schedule a free consultation today!
Happy New Year from the team at JUSTLAW.
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