You and your betrothed are hearing wedding bells and making plans for a long life of wedded bliss. Marriage is a legal and formal obligation to each other, where two lives become permanently entwined, as do all of their assets, debts, and income. Many consider a prenuptial agreement before signing up to mix everything together. Also known as a premarital agreement or a “prenup,” a prenuptial agreement is not just for the wealthy or those protecting their assets. The agreement also enables a couple to add clarification to economic rights and obligations as well as create a plan for inheritance, especially in situations involving children from previous marriages. It is best to create a plan for these items while everyone is happy and in love, well before anything unfortunate occurs, such as a divorce. If possible, try not to wait until the last minute before tackling this checklist to add to your agreement.
From your debts to your assets, everything you accumulated during your single life needs consideration. After you make the extensive list, you must then determine what to do with them in the event of a divorce. Do they return to separate property or are they included as a part of the marital assets, a true, “what’s mine is your’s” situation? Doing so not only helps you both become aware of the financial standing but also lets you know what to accomplish together and what to work out separately during the marriage.