Prenup

Prenup: To Have and to Hold…Onto Your Assets

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Couples spend many hours planning and a significant amount of money on their wedding, but personal finances and protecting assets deserve just as much attention and planning. When both parties are in agreement on discussing their finances, reviewing credit reports, and asset and liability information, long term asset appreciation and protection should take priority before the wedding day.

The most common way to protect assets is through insurance, and many times a prenuptial agreement (prenup). Although it’s not as much fun as discussing wedding plans, both have a place in pre-wedding planning when significant assets and liabilities are involved.

Traditionally thought of as a planning tool only for divorcing and retaining assets, prenups are a way to protect both spouses. Here’s how:

  • When assets are combined, debt is also consolidated, making the spouse who came with no liability now legally responsible for the other spouse’s debt.
  • Prenups offer a level of protection from creditors since they are a legal document filed through a court of law.
  • Prenups keep the assets coming into the marriage separate but allow the couple to acquire assets jointly as the union continues, creating equal joint ownership and distribution upon liquidation, whenever that may occur.
  • Both spouses should have their own attorney throughout the prenup process, helping to create fairness and full disclosure of all assets and liabilities.
  • Prenups help to guarantee the assets coming into the marriage remain the sole property of the spouse owning them, regardless of the state of residence for both spouses. Any money and assets coming into the marriage after the union becomes available for the division if divorce should occur.
  • Prenups can help protect an anticipated inheritance coming years later to one spouse, but only if it states in the agreement.

Deciding if a prenup agreement is right for you and your future spouse is a personal decision that shouldn’t be dismissed without consideration and consultation with an attorney.

Growing and protecting assets through financial advice for both spouses is at the core of our financial planning, as is disclosure and honesty between parties. We are here to help both of you manage your own, and your combined assets, as you start your lives together regardless of your decision to utilize a prenup agreement or not.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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