If you have any plans to marry, or your kids or grandchildren are planning to marry, consider a prenuptial agreement (pre-nup) as one of the first steps you or they should take.

A prenuptial agreement is not just for the wealthy and here’s why.

A prenuptial agreement provides:

1) Peace of Mind
Whether it’s the bride or groom if either one might get an inheritance, like a family business, stocks, bonds, or cash, a pre-nup will ensure it passes where it was intended.

If one partner has children from a previous marriage, again, it assures assets pass as intended. This is especially important in community property states like California, Arizona, Texas, and several others.

What if one partner is entering marriage with significant debt? All of these issues, and those above, can be handled and discussed in a pre-nup creating peace of mind.

2) A Good Omen
If you think you’re planning for divorce just because you discuss a pre-nup, that’s not the case. Many issues should be discussed before any marriage, from how to raise children to what, if any, religion will be primary in the family.

Just like preparing a will or a living trust doesn’t mean you’re planning to die; a pre-nup doesn’t mean you’re planning to divorce. What you are doing is discussing your intentions and desires with the objective of protecting each other.

3) Communication
The most important part of the pre-nup is to have open communication prior to marriage – deciding what each party wants without going to court. You’re able to agree while things are good, so in a bad situation, you’ve already decided what is fair. This is not about mistrust; it’s just being prepared for any possibility.

There are other options – a prenuptial agreement may not always be needed. If you’re entering the marriage and already have significant assets and your partner doesn’t, all you have to do is keep it legally separate. A house can stay in just your name, and cash can be held in a separate account and not commingled. It is important under this circumstance to designate beneficiaries of the accounts to solve any inheritance issues.

Marriage is not just an act of love; it’s also a legal agreement/contract and can be financially risky. Why not acknowledge that risk and plan for it ahead of time?
Do you agree or disagree?

To Your Prosperity,

Rennie

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Rennie Gabriel The Financial Coach

After two divorces and a business failure Rennie went from broke at age 50 to multi-millionaire after learning the three secrets of the wealthy (despite failing high school math). Rennie is a TEDx speaker and he now donates 100% of the profits from his books and online programs to rescue dogs and soldiers. His award winning, best-selling book, Wealth On Any Income has been translated into eight languages.