If you’re struggling to persuade your future spouse to consider a prenup it may be worth approaching the topic from the perspective of long term financial planning. Increasingly, couples are turning to prenuptial agreements as a way of clarifying their financial position and setting some investment goals for the future.
Clarify your financial rights and obligations
With more people marrying later in life these days, it is likely that one or both will have accrued their own wealth – and possibly debts too – before tying the knot. A prenup can clarify responsibility for settling existing debts such as mortgages on additional properties and can also be an opportunity to agree who has rights to properties and other assets acquired before marriage.
Discuss financial and investment priorities
A prenup presents an opportunity to set some life goals and think about the direction married life will take. It is a chance for both partners to air their aspirations, whether that’s to buy an apartment in the city to rent out or a country pile to renovate. By having the conversation early and taking time to look at the asset pool as a whole, couples can take a more strategic approach to wealth management, tax planning and future investments.
Set some red lines
Couples often have red lines that they will not compromise on, such as sending their children to private school or maintaining a much loved classic car collection. It is surprising how many couples enter into marriage without sharing their red lines with one another. A prenup gives both sides a chance to have an open and honest discussion about what’s really important to them when it comes to spending and investing.
A prenup is particularly useful for couples embarking on marriage for a second or third time. It is likely that they and their existing family members will have expectations that need to be discussed and taken into consideration. By preparing a prenup, both partners have a chance to challenge these expectations, gain a deeper understanding of one another’s perspective and make provision for loved ones. It can also reassure their existing families.
Avoiding costly negotiations later on
Prenups are often hailed as a way to avoid costly divorce battles if the marriage does ultimately break down. The flip side to this is that couples who have done all the hard negotiation early in their relationship are less likely to argue about money in the future. This will hopefully mean that divorce – and its associated costs – can be avoided completely.
Clark Family Law’s experienced family lawyers and qualified mediators can help you reach agreements over your finances and other aspects of your life together before you marry. To discuss preparing a prenuptial agreement contact us on 01423 637272.