When you consider that half of every first marriage in the U.S. ends up in divorce and that more than half of second marriages suffer the same fate, seeking advice from an attorney on the importance of getting your would-be spouse to sign a prenuptial agreement becomes of paramount importance.
Says the professionals at Laura Gillis, a prenup lawyer, prenuptial or premarital (prenup) agreements are legal contracts that engaged couples sign prior to saying “I do,” either on the altar or in a courthouse. The contract is engineered to outline in detail the distribution of liabilities and assets in the event of legal separation and impending divorce.
Prenups cover issues such as property division child support, along with the responsibilities and rights of each spouse during the duration of the marriage. Prenups are becoming more common in the 2020s, in particular among couples with substantial assets or those who’ve been married and divorced before.
With that in mind, how important is a prenup if you’ve already been married? Does signing a prenup prior to your second marriage mean the legal union is already doomed to failure? According to a recent report by the Plutus Foundation, most marriages fall apart due to financial issues and a lack of constructive conversations that revolve around repairing them.Couples who willingly enter into second marriages end up facing new financial challenges that stem from balancing blended families.
It’s no secret that combining your finances as a blended family is challenging at best and impossible at worst. This is because each partner is bringing their own financial obligations, debts, and habits to the new relationship.
When constructing a new household that includes children from a previous relationship or relationships, there are many moving parts that must be attended to so that the marriage isn’t off to a rocky start. Remember, by communicating openly with your new spouse, your blended family will thrive financially and emotionally. You simply need to work together towards the same financial goals.
That said, here are a few tips on helping you combine and manage your cash flow as a blended family.
Make Sure to Engage in Hard Financial Discussions Upfront
Everyone has baggage. That is, if you’ve been married beforeand are still holding onto old habits and wounds from previous relationships, it’s of paramount importance to have the hard conversations with your would-be spouse early on, even if the discussion revolves around a prenup agreement.
At the very least, your conversation should include your current financial situation on your own and what your combined finances will look like once you’re married.
It’s possible that as much as you and your new partner get along, you might have differing philosophies when it comes to money and how you spend or save it. You also might differ in financial philosophies when it comes to children. For example, you might be a big proponent of public schools while your mate insists on sending the kids to expensive private schools.
But talking these details out now can save you from entering a world of unmanageable debt later on. Something that can result in yet another divorce.
Discuss Your Partner’s Financial Responsibilities
Says The Plutus Foundation, blended families experience unique challenges when it comes to combining lifestyles and challenges. For instance, one or both partners could have children from a previous marriage or relationship. This creates a brand-new family dynamic that cannot be ignored and must be planned for.
You need to know if your partner has existing financial responsibilities to his former spouse and kids. The obligations can take the form of alimony and/or child support. Each state has different rules and requirements for child and spousal support. It’s important both partners understand how much money is owed every week or month and for how long.
Don’t be afraid to ask your partner if you can read his or her divorce papers which will include all the information you need to know regarding child support, spousal support, visitation/parenting time obligations, along with divided financial responsibilities.
Look Into Signing a Prenuptial Agreement
There’s no disputing the fact that a prenuptial or premarital agreement protects your, your partner’s, and your children’s financial interests in the case of a future divorce. Prenups might not be a particularly fun topic, but it can save massive issues down the road. It also forces you to plow through the tough topics now, prior to marriage.
Signing a prenup with the assistance of a good prenup lawyer will resolve upfront the future concerns related to the following:
–Expectations for future spousal support
–Distribution of premarital assets
–Retirement account and pension ownership
–Savings account and asset ownership
In the end, prenups can be a touchy, if not highly emotional,subject for many people. Just discussing the possibility of a prenup with an attorney can cause a temporary rift in the new relationship should your partner suddenly feel untrustworthy. It’s best to approach the legal topic sensitively, logically, and with the best intentions in mind,