Although it may be unromantic to mix marriage with money matters, it can become an issue between couples after marriage. In fact, financial issues are one of the leading reasons that marriages end in divorce both in Orange County, California and throughout the United States.
Experts often suggest drafting a prenuptial agreement before entering a marriage. On a practical level, more and more couples are opting for a prenuptial agreement because money can become a source of contention and the cause of a divorce. A serious relationship is not only about building a family; it is also about the merging of finances between two people. Finally, in a marriage that ends in divorce, unresolved issues alimony and property division can prolong the process and take an emotional toll.
A prenuptial agreement can both specify separate properties belonging to each spouse and protect them from being transferred to the other spouse during asset division. Moreover, if the soon-to-be spouses decide that one will forego employment, a prenuptial agreement can specify whether alimony payments will compensate for any lost income potential.
A prenup is also useful for those who have children from a previous marriage. It can protect those children's inheritance in the event of the unexpected death of one of the spouses.
The best cure for future money problems after a divorce is being prepared. A prenuptial agreement does not mean that the marriage will end in divorce; it is a form of security, just in case.
Because a prenuptial or postnuptial agreement is binding, it should be entered into cautiously. Unless there is enough proof that the agreement was made illegally, its provisions are compulsory once the marriage dissolves. Therefore, couples may wish to consult a family law attorney before signing a prenuptial agreement.
Source: The Washington Post, "Valentine's Day: Your money and your honey," Michelle Singletary, Feb. 13, 2014