How to Know If You Need a Prenup — And Why It's OK to Ask For One | GOBankingRates
You Should Get a Prenup If You Or Your Partner Has Kids
You Should Get a Prenup If You or Your Partner Have Substantial Assets
Other Reasons To Consider a Prenuptial Agreement
If You Decide a Prenup Is Best, There's No Shame in Asking for One
When you get engaged, your first thoughts likely go to planning your dream wedding, finding the perfect dress and trying to envision what the rest of your life with your partner will look like. You likely are not thinking about a prenuptial agreement — but depending on your circumstances, this is something that should go on your pre-wedding checklist. In today’s “Financially Savvy Female” column, we chat with Laurie Itkin, financial advisor and certified divorce financial analyst, to find out when you might need a prenup — and why it’s perfectly OK to ask for one.
“I believe a prenup is a must if either party has children from a previous relationship,” Itkin said. “It is important to understand what your future spouse’s financial obligations are to his/her/their children and/or ex-spouse. This could include child support, spousal support — also referred to as ‘alimony’ or ‘maintenance’ depending on the state — or an obligation to pay for college.”
A prenuptial agreement can ensure that you and your partner can fulfill any financial responsibilities to your kids (or exes) no matter what happens down the line.
Although everyone enters a marriage hoping it will be forever, this is not always the case — so take steps to ensure your assets will be safe in the event things don’t work out.
“People are getting married later in life than they did decades ago,” Itkin said. “A person in their 30s getting married for the first time could have accumulated even modest wealth, such as a 401(k) or equity in a home. During the prenup process, each party discloses all their assets and debts — in essence their net worth. State laws vary regarding what is considered separate property in the event of a separation or divorce, so knowing what you came into the marriage with and taking steps to protect your pre-marital assets is essential.”
In addition to having children and/or assets, other circumstances that would make a prenup a good idea include income disparities between you and your future spouse, coming into the marriage with debt, owning a business or expecting a large inheritance.
If You Decide a Prenup Is Best, There’s No Shame in Asking for One
After taking an objective look at your and your partner’s financial circumstances, you may decide that a prenuptial agreement is a good idea. And if this is the case, you should discuss your desire openly with your partner.
“It amazes me how many people will jump into bed on the first or second date and expose their intimate body parts, but are too embarrassed to discuss money with their lover,” Itkin said. “If you don’t have a prenup, you and your future spouse are agreeing to be governed by the laws in your state, and many are antiquated, draconian and ‘unfair,’ depending on what side of the fence you sit. Instead of dreading the prenup conversation, it can bring parties closer, be empowering and mitigate arguments about money that arise in nearly every couple’s marriage.”