Though most people would agree that marriage is a big step, representing an important change in their life, very few people realize the just how impactful the decision can be both legally and financially. After all, marriage is a contract entered into by two people and it entails many of the same possible ups and downs that all contractual relationships face. Joseph Cordell, the Principal Partner at Cordell & Cordell, says that after years of experience he believes few couples understand just how comprehensive this marriage contract is and how once you say “I do,” assets become complexly comingled in ways that are often difficult to unravel.
One of the things that many people may not realize is that even if one spouse contributes disproportionately more assets or income to the marital partnership, all of the assets may eventually become merged into one marital pie where the lesser contributing spouse is entitled to half. This means one spouse could walk away with a disproportionately larger share of the assets than they contributed. When couples agree to marry you also are agreeing to give your spouse half of all the wealthy you accumulate during the course of your marriage, and sometimes even after it’s ended.
People take a business-like approach to other major events with potentially important financial implications like buying a house or a car. Yet when it comes to marriage no research is conducted and no fine print is examined. A prenuptial agreement is an obvious way to do this and to attempt to ensure that your financial interests are protected. However, many people dismiss the idea as either being a sign of lack of genuine affection or as something only used by the ultra-wealthy, neither is true.
A recent poll by Harris Interactive showed that when asked nearly half of divorced people said they wish they had a prenup when they married. Forty-four percent of single adults say they would want a prenup and yet only about 5% of couples actually go through with it. Why the disconnect?
Rather than being an unromantic indication that you don’t trust your spouse, prenups should be sign as practical protection when the divorce rate hovers at 50%. It’s crucial that you take the necessary steps to secure your financial future in the even that happily ever after doesn’t come true. Perhaps the Michigan Supreme Court said it best when they wrote that prenups “allow couples the opportunity to ensure predictability, plan their future with more security, and, most importantly, decide their own destiny.”
Most people have worked hard for what they have and it would be a shame to lose half of it as a result of poor planning. If you or someone you know is considering a prenuptial agreement but has concerns, you need the help of an experienced South Carolina family law attorney to guide you through the process.
Source: “Careful Marriage Contract May Facilitate Less Painful Divorces,” by Joseph Cordell, published at HuffingtonPost.com.
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