After getting engaged, there are many tasks you need to complete to prepare for your wedding. As you make wedding plans, one step you and your spouse should consider taking is the creation of a prenuptial agreement.
Divorce is common, and the Centers for Disease Control and Prevention states that more than 630,000 couples sought divorces or annulments in the U.S. in 2020. Although having a prenuptial agreement can make the divorce process simpler, there are other reasons to create one of these legal contracts with your future spouse.
Creating a prenuptial agreement is one way to initiate the discussion about income, assets and debts. This can help you and your partner understand each other’s financial expectations before you get married.
Protect your assets
If your partner has accumulated less wealth than you, you could risk losing some of your assets if you end your marriage. A prenuptial agreement can help you protect some of the personal wealth you have worked for.
Keep your debt separate
If you and your partner eventually divorce, you could end up becoming responsible for some of his or her financial obligations. A prenuptial agreement can help you understand your partner’s debt situation and prevent you from taking on some of this debt during divorce.
Marriage is something you are likely excited about, and a prenuptial agreement can help you prepare for your upcoming nuptials. Start talking about your prenuptial agreement several months before your wedding to come to a fair and objective agreement with your future spouse.