posted in Prenuptial Agreements
on Tuesday, December 20, 2011.
Couples getting married in Connecticut may want to consider examining their financial baggage before tying the knot. As individuals age, there is an increased likelihood that their finances aren’t as simple as income and debt. If an aging couple wants to keep any personal asset from becoming a marital asset, they should consider a prenuptial agreement.
Previous divorces may create situations where someone pays child support or alimony. Early preparation for retirement may bring a 401(k) plan into the picture. Assets such as cars, properties and other belongings may be brought into a marriage. In case of divorce, individuals in their 40s or older should look at the option of a prenup. By creating such an agreement, a couple can protect any previous assets from being lost during the division of property that occurs with a divorce.
If one does not know whether or not a prenuptial agreement would benefit them, try creating a manageable list of all individual assets and debts belonging to each partner. A couple should look at each other’s income, bank account balances, dividends from investments, retirement benefits, Social Security benefits and equity in the form of major purchases such as homes or vehicles. With debts, list all credit card balances, medical bills, mortgage payments, personal loans, insurance premiums, child support and alimony.
When creating a prenuptial agreement, be sure to designate who gets what in the divorce. Usually, this means that premarital assets return to the original owner. A prenup can also be used to prevent a spouse from arguing about the terms of a will or a trust if the other dies.
Source: PennLive.com, “Financial planning important for later life marriages,” Jason Alderman, Dec. 6, 2011