Thursday, January 15, 2015
From USA Today:
Talking about money is never easy, especially with someone you love and especially when you're talking about keeping it for yourself.
While we commonly think of prenuptial agreements as contracts for the soon-to-wed wealthy, you don't always enter a marriage with riches, or guarantees that the bliss will last. And even if differences or difficulties don't arise, it might not be a bad idea to have such a plan in place.
Prenuptial agreements, or "prenups," are contracts entered into before marriage that outline the division of assets in case of divorce. They may touch on things like spousal support (alimony), ownership of businesses and properties, and even financial duties and responsibilities during the marriage.
"Since getting into the business and seeing what can happen to family relationships in a divorce, I'm not sure there is an instance where a prenup would be a bad thing," says financial adviser Jeffery Cortright, president of Phase 2 Investment Advisers in Jenison, Mich.
While prenuptial agreements are normally thought of as a matter of assets, there are many other concerns that can be addressed in the contract, such as: the costs of raising a child, caring for a parent or going back to school; shopping habits and matters like credit card debt; the costs and proceeds of business ownership; tax liabilities; spousal and child support from previous relationships; and even how death or disability could affect the finances of your family.
Read more here.