A salty old saying states, “there’s no romance without finance.”
Maybe that’s just a cynical thought, but it certainly is a thought-provoking statement about relationships! While the events leading up to a wedding are full of love and joy, it’s important to remember that marriage is a legally binding contract as it is a romantic occasion. If you’ve already been down the aisle before, a prenup is worth considering as you embark on a new marriage.
It’s common knowledge that divorce rates are relatively high for first marriages, but those statistics only worsen with second marriages. Having a prenuptial agreement before you say your vows can protect both you and your partner if you must go your separate ways- especially given that a significant factor leading couples to divorce is financial problems.
What Does A Prenup Protect?
To put it simply, a prenuptial agreement, more colloquially referred to as a “prenup,” is a legal agreement drawn up before a wedding in which both parties agree to specific terms for their finances, characterization of marital property, and the potential division of assets. Some prenups include terms for spousal support in the event of a divorce and other anticipated post-divorce needs.
If you are entering your second marriage, it’s also important to consider what you and your partner are bringing into your union. The marriage itself will give you both plenty to consider, but if either of you has children, there are other complications to worry about. A carefully prepared prenup can set out guidelines for expense responsibilities. The same is true of spousal support, maintenance, or alimony. If you or your partner are responsible for support payments, it’s important to discuss this before your marriage.
How Do You Propose a Prenup?
It’s a common misconception that proposing a prenup means that a person believes their marriage is doomed to fail from the start. However, the reality is that a prenup is quite a loving gesture. It shows your partner that no matter what happens between you, you will honor the love you shared by committing to a mutually agreed-upon course of action if the relationship dissolves. So it would help if you proposed a prenup early on, in the same way you bring up anything else related to how you will live as a couple during your marriage.
When Should You Propose a Prenup?
If there’s one thing to keep in mind about a prenup, it’s that the time to propose one is not when you begin to plan your wedding. On the contrary, severe financial conversations should be happening as soon as you start contemplating a life together. Your discussions should raise the issue of a prenuptial agreement. It cannot be stated strongly enough that aligning with your partner on finances and assets is imperative to the success of your relationship! Early conversations about these often awkward or difficult subjects ensure that both parties are on the same page so that taking steps to draw up a prenup won’t come as a surprise. If you cannot discuss finances with your betrothed, you are already on a path to possible ruin in the relationship.
Talking About Finances
Marriage not only impacts your life in a romantic and personal way but undeniably makes a financial impact. You will now be partners in life and money - in times of good and bad. Before getting married and discussing a specific prenup, you and your partner must intimately understand one another's financed.
Most people are uncomfortable discussing finances. Most people are concerned that talking about money diminishes their romance. But nothing pours cold water on a relationship quite as well as disputes over resources after you are married! Open and honest communication is the best way to show that you genuinely love and respect your partner. Discuss your current financial situation and what you expect your financial situation to look like once you're married.
Talking about money early on in your relationship can also help you and your partner plan for the future. How do your personal goals fit into your financial plan? What about your partner's goals? When it comes to raising children, opening a business, or purchasing a home, having a plan is often the key to achieving your dreams in a mutually fulfilling way.
The scope of a prenup's purpose varies from person to person, as each situation and relationship is wonderfully different. The beauty of establishing a prenuptial agreement is that in the worst-case scenario, both you and your partner are protected by a contract based on love and respect for one another. You never have to give it another moment's thought in the best-case scenario after walking down the aisle. In a worst-case scenario, you already know what the outcome will be.
Bottom line? Money talks are just as important as talks about living arrangements, chore responsibilities, and intimacy. If you stop and think about it, you and your future spouse will spend much more time in intimate financial situations than anything else you will tackle together!
When You Get Married in Texas, You Already Have a Prenup!
That’s right! And you already know about it! The Texas Family Code provides that everything you have in marriage is considered community property unless proven to be otherwise. In a divorce with no prenup in place, the Texas Family Code provides that the community be divided in a manner that is “just and right.” Most courts interpret the “just and right” division as a fifty-fifty split. A Texas divorce court would rarely divide the community other than fifty-fifty. Proving up separate property that should be yours and not part of the community can be extremely expensive and challenging for the unprepared. Drafting your prenuptial agreement can be a loving way for a couple to get together ‘on the same page financially and provide security and comfort for both of you. Early on, a fair bit of effort and expense can save much pain and cost later on, should something happen to the marriage!
Finally: Consider Your Heirs
If either of you has children or other potential beneficiaries to your estate, a prenup can help with estate planning. If your life should end, your entire estate could wind up in an expensive battle of determining what property was your separate property and what property was community property. There’s no way of predicting what any of your heirs (or potential heirs) will do once you are gone. Do you want your separate property to have a contractually-bound determination? Or do you want to take a chance that it all goes to legal fees in a battle over your estate? It's important to bring this up with your local Houston divorce attorney.
Bottom Line?
A prenup is well worth the time and expense for providing a more predictable future, with peace of mind and less drama!
