Pre-Marital Planning

Congratulations. A wedding is a big event. It takes a lot of planning to make the big day a success.

Hindsight is 20/20

Like so many things in life, when something does not play out as planned, we tend to look back and try to learn from our mistakes. What would I have done then, knowing what I know now? In many instances, a bit more planning and better information could have made all the difference. For instance, a catered wedding reception in a beautiful city park sounds wonderful. On the other hand, if it is a February wedding in Fargo, then maybe the warm confines of the American Legion hall might be a better alternative.

Marital Reality

The same can be said for another aspect of pre-marital planning. Beyond renting the hall and hiring a DJ for the reception, have you considered any planning to protect your assets and loved ones in the event of a divorce? This is definitely not the most exciting or romantic topic to consider. On the other hand, in the context of a family business, your family members and key employees may not want to be in business with your future ex-spouse.

According to commonly cited statistics, our nation’s divorce rate is high. It is even higher for those who were married before. If you are entering a marriage with significant assets or children to protect, then you should consider a pre-marital agreement.

The laws of every state regarding the division of property in divorce can be complicated and may vary dramatically from state to state. Each spouse typically retains his or her “separate property,” which is the property owned prior to the marriage and any property received as a gift or an inheritance during marriage. But a “prenup” can help smooth out some of the rough spots, if the marriage is dissolved.

Premarital Agreements

A premarital, prenuptial or ante-nuptial agreement is a written contract signed by the two individuals about to be married. Signing the agreement may mean that one or both of the individuals are giving up some rights he or she might otherwise enjoy under the law, in the event of divorce or death. Along with some restrictions regarding what such an agreement can contain (e.g., there is no waiving of a child support obligations), for a premarital agreement to be valid, it should be:

  • In writing and signed by each of the future spouses;
  • Accompanied by a complete financial disclosure by each of the future spouses prior to signing;
  • Reviewed by separate attorneys representing each party before signing; and
  • Presented to both parties with sufficient time before the wedding for an independent legal review.

Premarital agreements can be very effective vehicles to ensure that assets remain in the family. However, they do have some drawbacks, such as being challenged in a divorce because assets were not disclosed at the time of the signing or one spouse felt pressured into signing on the eve of the wedding.

Final Thoughts

You can only control what you can control in life, but what you control can make all of the difference. The same thing is true with pre-marital planning. Love may be blind, but it is best to enter a marriage with both eyes open.

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