Are you looking to protect yourself and all of your assets before you get married to the love of your life? Do you and your future spouse want to make sure your individual assets are protected in the event of a divorce?
If that’s the case, then you will want to learn how to make an effective prenuptial agreement checklist. Doing so can help you ensure a marriage without worry. Even if the relationship doesn’t last, your property is protected (as is theirs).
Be sure to read below for a prenuptial agreement checklist that you’ll want to consider as you and your fiancé prepare for unity.
1. Sit Down With Your Partner
A majority of prenuptial agreements never happen due to a delay in conversation. In fact, there are several relationships in which the topic is never brought up. It’s one of the most common prenup mistakes in the book.
While it might be a bit taboo to think about heading into a marriage, it’s important to draw a line in the sand. If you both have property and assets to protect, then a prenuptial agreement needs to happen. It can ensure you’re both getting married for the right reasons.
If you haven’t already, be sure to talk about your interest in putting together a prenup with your future spouse. Schedule a time for you both to sit down and hash out the details.
You might be wondering “when is the right time to bring it up?”. Should you bring it up before or after the engagement. Typically, the sooner you talk about it (or at least mention it), the better.
However, if you’re already engaged, then try to have that conversation at least 6 months before the date of the wedding. It can give you both peace of mind and ensure that you’re on the same page.
2. Protection of Your Estate
Perhaps you already have plans for how your estate will be carried out when you pass on. If so, then you’ll want to make sure those plans are protected before the wedding occurs.
For example, say a man gets married to his second wife around the age of 65 to 70 years old. He already had a will in place that carries out his wishes for his children to inherit his property, prized possessions, and so forth.
If he never took the time to organize a prenuptial agreement, then it could complicate his estate plans. His spouse could attempt to claim ownership of certain assets that were intended for his children, grandchildren, or close friends.
What’s important to remember is that a prenuptial agreement does not take the place of a will/trust. It can only be used to reinforce the intent of those legal documents, but not provide instructions for how to divvy out your estate after you’ve passed.
3. Protection of Your Money
The topic of money management isn’t an easy one to have. There are so many different aspects that you and your spouse need to consider. If you both have established savings and financial backing, you need to get things sorted out.
You or your spouse might have financial items such as:
- luxury vehicles
- Traditional IRAs or Roth IRAs
- Stocks and Bonds
- Rental Properties
- Significant Savings accounts
Those assets need to be protected on both sides. Then there is the matter of how you’ll organize your finances after you marry each other. Be sure to ask questions like these:
- Will one of you be in charge of planning your finances?
- Do you plan to carry separate banking accounts or start a joint bank account?
- Will one of you be in charge of paying monthly bills?
- What will be your long-term financial goals (if any) after you’re married?
- Does your future spouse prefer to have professional help with finances (such as a financial planner)?
4. Protection from Debt
Some of you reading this might be entirely debt-free. You’ve worked hard to rid yourself of any debtors and have taken complete control over your finances.
However, you could be in a world of hurt if you never discuss a prenup with your future spouse. If they pass on after you’ve married and had a debt to their name, you might find a creditor coming after you for the money your spouse owed. Regardless of whether the debt was entirely your spouse’s or not.
Make sure to list all the ongoing debt you and your spouse have. The prenup you comprise should protect each other from assuming the other’s debt if they pass on.
5. Marital Assets and Debts
Contrary to popular belief, a prenuptial agreement isn’t just for protecting assets and debts before marriage. It’s just as much about focusing on the future.
You and your spouse can use this time to draw up how you’ll handle the assets and debts you accrue after you’re married. Will you split them right down the middle? Do you feel as if you should take a larger percentage?
There’s no correct answer for this. What you and your spouse work out amongst yourselves is the best solution for your marriage moving forward.
Comprise a Prenuptial Agreement Checklist Today
Now that you have seen this prenuptial agreement checklist, be sure to use it to your advantage.
There may be other factors you need to consider in the prenup you work out with your future spouse. Be sure to assess your situation and move forward from there.
Make sure to browse our website for more articles on prenuptial agreements, as well as many other helpful topics that you’ll enjoy.