Like no other time in your life, when planning a wedding it is easy to get wrapped up in the little details that will make the day memorable. It is easy to forget that you should not just be planning for one day – you should also be considering how that one day will affect your future.
For many couples, it is a good idea to sign a prenuptial agreement before walking down the aisle.
Historically, prenups were typically used by couples when there was a significant disparity in wealth going into the marriage. Not so, these days. If a couple is on similar financial footing, even if that may involve significant debt, signing a prenuptial agreement is a smart tool to plan for the future.
Prenuptial agreements can address a wide variety of issues that can arise upon a divorce. How will you divide your assets? How will you account for assets that are taxed differently, such as 401(k) accounts and Roth IRAs? What will happen to a jointly owned business?
In addition to addressing financial issues, prenuptial agreements can also provide guidelines for a couple’s behavior following a split. As social media sites have become a window into the private lives of our friends and casual acquaintances, prenups can ensure your soon-to-be former spouse does not use that platform to your detriment.
An increasing number of couples are choosing to include a social media provision in their prenuptial agreement. Typically such provisions will indicate that each spouse is prohibited from posting embarrassing or derogatory comments or pictures on social media sites – such as Facebook, Twitter and Instagram – upon a divorce. If the provision is violated, the spouse is usually subjected to a monetary penalty.
If you have recently gotten engaged, you should not hesitate to consider whether signing a prenuptial agreement is right for you. You want both parties to have time to consult with an attorney and agree to the terms before you walk down the aisle.
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