Orange County residents who are thinking about getting married may want to consider settling their financial matters before marryiage. That is especially important where a divorced spouse is going to remarry. A divorced person may have children, acquired or lost some assets, or have other financial responsibilities and interests.
Before exchanging wedding vows, it is essential that the couple speaks to a financial planner or a lawyer who is knowledgeable about prenuptial agreements. The prenuptial agreement can help define the obligations of each partner, in case one of the people files for a divorce. Furthermore, the prenuptial agreement will act as a contract and it is important if either partner has a significant amount of wealth or children they need to protect. In California, the default in property division, if no prenuptial agreement exists, is to divide the marital property evenly.
In addition to creating a prenuptial agreement, other documents should also be updated before remarrying. It is advisable to have an estate plan that will reflect any possibility of a life changing event, such as a divorce. The beneficiaries of the benefits should also be updated.
A prenuptial agreement does not dictate the possibility of divorce. It is a proactive solution, just in case. In fact, it is a form of security for each spouse to make sure that financial goals will not cause conflict while they are married.
Orange County couples should be cautious, though, because there are some requirements to ensure that a prenuptial agreement is valid. A prenuptial agreement should be made voluntarily and should be mutually acceptable. The couple should also provide full disclosure of their assets and it is a good idea to get a lawyer involved before signing the document.
Source: Market Watch, "Boomer weddings: What to do before marrying assets," Joe Lucey, July 1, 2013