prenup agreement tip

lifeserve.com

A prenuptial agreement is a sticky subject for most couples. Though it's a difficult issue to discuss, it can save you time, money, headache and heartache if done properly. If you feel that a prenuptial agreement is an important issue for you, broach the subject early in your engagement.

A prenuptial agreement is a contract between two people that indicates how assets will be distributed in the event of divorce or the death of a partner. It protects the assets and interests of each individual in the marriage.

You might want to consider a prenuptial agreement because it can:
* End uncertainty about the financial outcome of a divorce
* Eliminate lengthy court battles
* Ensure your assets are distributed according to your wishes in the event of your death

Discussing this kind of agreement also is a good exercise in discussing important issues - such as commitment - with your future spouse.

A prenuptial is smart financial planning. Consider a prenuptial agreement if you:
=> Own a home, stock or retirement funds
=> Own your own business
=> Are eligible for an inheritance
=> Are much wealthier than your fiancé
=> Have older parents to care for
=> Have a degree in a highly lucrative field
=> Anticipate a large rise in income
=> Have children from previous marriages

In order to develop a good prenuptial agreement you should:
* Have an honest discussion with your fiancé as early as possible in your engagement. Honesty is absolutely the best policy in this process, and the earlier you understand your fiancé's feelings, the better.
* Reach an agreement about the distribution of actual and potential assets. Draw up a list and talk about it before consulting a lawyer.
* Hire separate lawyers. Each of you should have your own attorney to explain your rights upon the event of divorce or death. The attorneys will write the agreement together with your individual interests in mind.
* Keep it up to date. Every few years -- or if your financial status undergoes significant change -- you should review the agreement and discuss any potential changes. You also can add a 'sunset clause' which will make your agreement expire after a period of time.

Prenuptial agreements may be hard to discuss initially, but they can bring peace of mind to you both if you know your individual rights and assets are legally protected. Contact a lawyer who specializes in family law to ensure you have the best legal counsel possible.

I have an interesting question:
Do normal people do these (by normal I mean not gazillioners, not celebritiies, not polititians).

We're not planning on one, don't really see the need, but I wanted to know how other girls feel.

I think mostly people with a lot of money do it, and even then it's not all of them.
I'd say movie stars, singers, sports players, etc........

actually my Alternative Dispute Resolution professor (she also teaches Family Law) says many professionals or any one who will be getting family inheritances often get them - so YES NORMAL people DO get them.

Will I get one- not sure probably not - am I for or against them - not sure YES they are unromantic but you really can never predict the future - Supposedly many people who get them immediately put them in a safe deposit box somewhere and completely forget that they are there unless they need them down the road

Remember alina not everyonge gets them for money only purposes at divorce only. Whether they will be upheld in court or not is another story but many people put clauses in about things that they want in their marriage - like no children, or what they will do if they can't have children, about how they want to separate money when they are married.

As she said - 50% of marriages end in divorce these days. I can GUARANTEE you that 100% of the girls on these boards are not entering their marriages saying I have a 50% chance of divorce - but are going in saying this is forever.

These are only for those who are comfortable enough in their relationship to discuss these issues. Many people fear these discussions (but from a divorce attorney I worked for years ago - MANY people at the time of their divorce are often disappointed that they didn't have one.)

Meghan, so your parents are encouraging you for this? Wow...
I guess for us neither I nor FH feels like we need one, and in general we sort of wouldn't know what to even put into it.

We're still working on figuring out our current spending patterns and which financial services/divisions would work best for us...

But since we don't know anyone with a pre-nup, it was never really a question for us, except perhaps in 'joking - like' conversations.

Nice way to start your future together!

We didnt think one was necessary, but I don't think theres anything wrong with them either. I always looked at them more as a way to protect assets then as a path for divorce. (I don't have many assets..LOL)

Making provisions for children from previous relationships, family inhertances or property, etc are important issues that need to be addressed before you get married.

No I am replying in general.

I have lived with Ron for almost our whole relationship and almost the whole time have had a joint bank account...

Marriage is about Love like you said NOT $$ so why worry and try to predict your financial future?

I know that with my parents I have alot more assets then he will have. I will always be in a position to make more and more $$ as the market gets better and with more experience...

He can only get better with knowledge and the opening of his own company but NEVER would I think of having a prenupt..

I THINK its disgusting.

There is alot more in life then $ and I am so materialist. and I know how hard times can be and I know how to be on top of the word buying 500 shoes..

I can't BELEIVE people would sign them,

ITS A GENERAL STATEMENT!

I believe in them and if I had assets worht holding on too as well as FH I would draw one up

I beleive it depends on couple

Not for me, but I guess some couples will find this necessary.

My accountant and FA did strongly recommend DH and I draw up a will as soon as we were married. Not very romantic, and kind of scary to think about...but it's necessary if you want to be sure your 'estate' is handled the way you wish.

Not doing one. But we are also drawing up a will as soon as we are married. Along with updating our beneficiary information for what we have so far.

Normal people do get them. Fh and I decided not to get one, but the attorneys that I work for did suggest that I get one. This is the situation: My family will be selling my house to us for a very low price. Not market price. So my attorneys suggested that we get a prenup for the difference b/w what we are paying for the house and the market value b/c god forbid something happened b/w FH and I, he will be entitled to the full amount of the house.
Like I said, we did think about doing one, but in the end we decided against it. It's just not the right thing for US. But I think each couple needs to decide what's best for them given the circumstances.

Edited to say, Wanda: That's awesome that guys are going to have your wills drawn up. I was in the Elder Law Clinic last semester at my school and learned how very important they are and that you don't need ot be old to get them.

I am signing one. I was very po'd about it in the begining but once i did some research on it I was ok with it. It didnt help the FMIL had to put her 2 cents in and caused a lot of arguments between FH and I.