| There are many details to think about when you're | | | | What if one of you was transferred for your work |
| planning your wedding; however, a prenuptial | | | | and had to move to another state?o What if one of |
| agreement (also known as a premarital agreement) | | | | you wanted to move closer to extended family after |
| shouldn't be left to the last minute. Here's a list of | | | | having children? |
| issues to think about before you speak to your | | | | Spousal Support and/or Alimony: |
| fiancé and your lawyer regarding a premarital | | | | How do you feel about spousal support? In most |
| agreement. If often helps to know your own feelings | | | | states, the rights to claim support go to both the |
| about these issues before decide to talk to your | | | | husband and wife. You don't have to address this in |
| fiancé about them: | | | | your agreement if you don't want to, but it makes |
| Premarital Assets and Debts: | | | | sense to talk about it. Some issues you may want to |
| You'll want to make an exhaustive list of your assets | | | | talk about are the following:o Will there be any |
| and debts that are currently in your name. It's required | | | | limitations on the amount, terms and duration of |
| for your prenuptial agreement, and it's also good | | | | support?o Do you want to make terms about spousal |
| practice about being up front and straightforward | | | | support or alimony that are different than what your |
| about financial issues with your new marital partner. | | | | state law allows?o Do you both expect to work, and |
| Below are some questions to think about when thinking | | | | to contribute to the household?o What are those |
| about premarital assets and debts:o Once you've | | | | expectations?o Even if you think you're in agreement, |
| made your list, how will you handle premarital assets | | | | it's worthwhile to make sure you're both going into the |
| and debts in the event of a divorce?o Will the assets | | | | marriage with the same expectations about earnings |
| and debts remain separate property, meaning that | | | | and work.o Would there be a circumstance that would |
| they will go back to the person who accumulated | | | | lead to one partner not working, such as a health |
| them before the marriage?o Or will your separate | | | | problem or birth of a child? What about going back to |
| property be inter-mingled with your marital property?o | | | | school?o Does that change your mind about how you |
| What if one person's pre-marital property is used to | | | | feel about spousal support or alimony? |
| pay off the other person's pre-marital debts(i.e. school | | | | Gifts from Families: |
| loans)?o Will the paying party need to be reimbursed, | | | | Sometimes one set of parents or relatives gives a |
| or is it a gift?o What if you use premarital property to | | | | couple a large monetary gift, loan or a home |
| buy a home you'll own together?o Will the paying party | | | | down-payment. It is important to make clear what kind |
| need to be reimbursed, or is it a gift? | | | | of gift this is. Below are some questions to ask when |
| Marital Property: | | | | faced with this situation:o Would the gift from the |
| Marital property describes the assets and debts that | | | | family be marital or community property, or the |
| you will accumulate together once you are married. | | | | property of the spouse whose family gave the |
| Below are some questions to think about regarding | | | | money?o If it's a loan, who would be responsible for |
| marital property:o How will you handle the income and | | | | repaying it, and how and when?o How formal will you |
| assets you accumulate together?o Will they be joint, | | | | be with the documentation if it is a loan? |
| and 50/50?o Will you use another arrangement? | | | | Being clear between yourselves as well as with your |
| Management of Assets and Income: | | | | own family will help you avoid conflict in the future. |
| People tend to be either spenders or savers. Given | | | | Taxes: |
| that opposites tend to attract each other, it's typical for | | | | Once you are married, your finances will be intertwined |
| a couple to have very different money styles. That | | | | for tax purposes unless you agree otherwise as part |
| can work out just fine, provided that you each know | | | | of your premarital agreement. It is important to be clear |
| about the other's priorities and goals and provided you | | | | on what your attitudes and opinions are in regards to |
| can work out a way for each person's needs to be | | | | paying taxes. Some questions you may want to ask |
| met. For example, one partner might be concerned | | | | each other:o Will you file separate taxes, or joint |
| about retirement savings and future security. The other | | | | taxes?o Does either partner have questionable tax |
| partner may feel that money is to be enjoyed and | | | | deductions or a lighthearted attitude toward filing taxes |
| spent for things like vacations and luxury vehicles as | | | | at all? Does that worry the other partner?o Is there old |
| part of a well-lived life. Can these styles be reconciled? | | | | tax debt?o Who will be responsible for that debt, |
| The answer is yes, of course, provided that you have | | | | knowing that a refund while you are married could be |
| a plan for what will be set aside for retirement and | | | | seized to pay an old, premarital debt? |
| what's available to use for enjoyment. Some questions | | | | Higher Education: |
| to ask yourself regarding the management of assets | | | | Sometimes one spouse will want to or need to return |
| and income are:o Who will make the financial decisions | | | | to school. This situation may leave one spouse to |
| and handle the checkbook?o Will you do it together, or | | | | support the other while he or she pursues a degree. In |
| will one person be the primary financial manager?o | | | | this situation, it is important to communicate clearly with |
| What about large expenditures?o Does your spouse | | | | each other the expectations of each party. Some |
| need to ask you before buying that plasma TV or | | | | helpful questions to ask:o Will one of you be attending |
| designer gown?o How will the household bills get paid, | | | | college, graduate school, or professional school during |
| and whose responsibility is it to pay them?o Will you | | | | the marriage?o Will one of you have to support the |
| have joint bank accounts, separate bank accounts, or | | | | other while he or she is in school?o How will you deal |
| both?o Do you have similar money styles?o With | | | | with this sacrifice made by one person if the marriage |
| respect to debt?o With respect to savings?o Have | | | | doesn't work out?o How will student loans be repaid?o |
| you discussed your long-term financial goals, and how | | | | Would the expectations about income and earnings |
| each of you will contribute?o What about retirement | | | | change if one person wants to go back to school |
| savings?o Will the decision-making authority be | | | | after you've been married several years? |
| different for pre-marital property or debt that belonged | | | | Duration of the Premarital Agreement: |
| to one of you before the marriage?o If one of you | | | | It is up to you and your spouse to decide how long a |
| owes spousal support or child support from a previous | | | | premarital agreement may remain in effect. Couples |
| marriage, how will those payments be made?o From | | | | can ask themselves if the agreement will stand |
| joint property or income, or separate property?o In the | | | | forever or if it will expire at some point:o Does having |
| event of a separation or divorce, would the other | | | | children change your opinion on how your agreement |
| spouse want or expect a reimbursement for these | | | | should work?o What about being married 10 years, 20, |
| payments made during the marriage?o What if the | | | | 30, or 50 years? Would the agreement ever expire or |
| obligation is informal--like voluntarily paying for an adult | | | | be renegotiated?o If you separate, does it matter who |
| child's college? | | | | chooses to end the marriage? Does it matter why?o |
| Credit and Debt: | | | | Would you want for the agreement to be renegotiated |
| Have you seen each other's credit reports? Now | | | | at a specific time, like 5 years after the marriage, or |
| might be a good time to have a serious talk about | | | | after the birth of the first child? |
| credit scores and priorities with respect to paying off | | | | Business ownership: |
| old debt or accumulating new debt.o Is it likely that | | | | If you or your spouse own a business separately, |
| either of you might over-borrow? Or refuse to borrow | | | | there are special issues you should consider.o Would |
| no matter how much sense it makes to the other | | | | your prenuptial agreement include an indemnification on |
| person?o Consider joint credit issues, as well as issues | | | | the business debts and taxes--business, personal, back |
| like pledging your home as collateral on business, or | | | | taxes, payroll taxes?o Are there issues with the type |
| using a home equity line of credit to fund a business or | | | | of business entity, like a subchapter S corporation or d |
| tide it over in an economic downturn.o Does either of | | | | b/a, and how the corporate spouse determines his or |
| you have bad credit? Will you and your spouse jointly | | | | her own income?o Many small corporations have a lot |
| sign on new credit obligations?o Are back taxes | | | | of discretion with how much of the corporation's |
| owed? If so, how will they be paid? Jointly, individually, | | | | income is taken as salary or income for the |
| and from which checkbook? | | | | corporation's officers or employees.o Do you want to |
| Working: | | | | make provisions for forensic accountant or auditing |
| What are your views on non-monetary contributions, | | | | books in the event of a separation or divorce?o Do |
| like raising children or managing the household? Most | | | | you want an agreement on how much income will be |
| states recognize these types of contributions during a | | | | contributed to the household and how much might be |
| marriage, but it's important that you share your attitude, | | | | kept separate?o What if a premarital business starts a |
| and that you know your fiancé's attitude about | | | | new business or subsidiary after the marriage?o What |
| these types of roles in a marriage. Below you will find | | | | if one or the other of you works for the other person |
| some questions to think about in regards work:o What | | | | in a pre-marital business? There can be many "out of |
| is your expectation about the kinds of jobs and income | | | | job market" issues, so negotiating your terms of |
| you will each have?o Do either of you anticipate a | | | | employment with your spouse before joining the |
| career change at any point in time?o Some jobs are | | | | business can be an important step. |
| riskier than others, like firefighters, military personnel, | | | | Fault: |
| and stunt performers. Changing your job can impact | | | | Fault can be defined as who is to blame for the |
| the other spouse, especially if you become disabled | | | | divorce. Fault can be evidenced by an affair, drug or |
| thanks to an on-the-job injury.o Other jobs pay less but | | | | alcohol abuse, among other things. However, most |
| are very personally rewarding. Teachers and | | | | state laws either won't consider fault, or barely |
| non-profit positions typically don't pay very well. How | | | | consider fault, in dividing property or awarding spousal |
| would you feel if your spouse changed careers?o | | | | support in a divorce situation:o How do you and your |
| When do you plan to retire? As early as possible, or | | | | fiancé feel about fault?o Would it make a |
| do you plan to work as long as you're able?o Do you | | | | difference to you in your property settlement or |
| anticipate both of you continuing to work after having | | | | spousal support if you felt one person contributed |
| children? Or would one of you stay home? For how | | | | more to the breakdown of the marriage than the other |
| long?o How will you handle move-away decisions?o | | | | person? |