If you’re getting married soon and you’re worried about what’ll happen to your money, you’re far from alone.
Don’t worry about it, it can be your dirty little secret and it’s far from unusual to take steps to protect your finances in marriage. Life is short, love can be shorter, and hey, all the rich people are doing it, too!
When it comes to protecting money and assets in marriage, there are several steps the rich take to ensure that if anything goes wrong, everything is taken care of. When it comes to the first steps, indeed a prenuptial agreement is often the simplest way to go. The obvious benefit of a prenup is that it allows you and your spouse to agree in advance as to how your assets will be divided in the case of a divorce. TV shows might have you believe that this is normally only beneficial to a wealthy spouse who’s about to marry someone without much in the way of assets, but the reality is different. Of course someone rich in assets can benefit from a prenup, but so can stay-at-home parents and others. A prenup should take both partners’ concerns into consideration, and each party should have their own attorney draft and review the documents before they’re signed in order to ensure both sides are being fairly represented.
High net worth couples also often separate their forms of income in order to protect their individual assets in marriage. When it comes to legal dues in divorce, separating certain forms of income in advance is a great way to make sure that money is off the table when it comes time to pay up.
Estate planning is another way the rich protect their assets in marriage. Couples of a high net worth can meet with a financial planner to designate where their assets should go in case of death, and an estate manager can separate certain assets before marriage. If these assets are not used during the marriage, they won’t be considered joint income.
Lastly, but oftentimes most importantly, make sure that there is a plan in place for any debts the marriage has accrued. Debts on cars, homes, and pretty much anything else will be shared if both spouses don’t plan ahead.
