Our Monthly Tip, as featured in Family Lawyer Magazine:
Believe it or not, the romance associated with Valentine’s Day is not incompatible with prenuptial planning. In fact, a time when couples feel confident about their lives together can be a perfect time to cement the future if their paths diverge. It’s time to shift the negative perception of prenups as a declaration of uncertainty about the longevity of the marriage and allay possible unease about discussing financial situations with their future spouse. February is the perfect time to realize why prenups are not only responsible but romantic!
A prenup discussion is the perfect setting for engaged couples to have a transparent and honest dialogue about their finances and spending habits. Having these discussions when the couple is in love can facilitate candid disclosures of all assets and liabilities, annual gross income, family trusts, and potential inheritances. Failure to fully disclose assets could result in the prenup being set aside in the event of divorce. In addition, full disclosure ensures each spouse understands what they are getting and giving up.
What is more romantic than entering a marriage with a mutual understanding about a couple’s financial future? For those with substantial assets or couples with a difference in wealth, prenups can help eliminate the financial uncertainty associated with setting up a household together. The wealthier spouse may feel confident that their assets are secure, while the less wealthy spouse may be relieved to receive some property and/or alimony regardless of the success of the marriage.
At the end of the day, starting the marriage off with the right foundation of transparency and shared understanding can set couples up for success before, during, and if it comes to it, after marriage. Show future spouses true love by agreeing to execute a prenup in the happiest of times. For that conversation, the roses and chocolate aura of February can be ideal.
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This article is for general information only and is not intended as an offer or solicitation for the sale of any financial product, service or other professional advice. Wilmington Trust does not provide tax, legal or accounting advice. Professional advice always requires consideration of individual circumstances.