3 On Your Side: Getting Married? Consider A Prenup
By Jim Donovan
PHILADELPHIA (CBS) - Are you attending any weddings this month? June remains the most popular month for brides and grooms to exchange their vows. But there's something many of them don't do before saying "I do". 3 On Your Side Consumer Reporter Jim Donovan says it all has to do with prenups.
Prenups aren't just for celebrities and millionaires and it's a conversation many couples should have. You wouldn't drive a car without car insurance, think of a prenup as marriage insurance.
As a happy couple prepares for their big day the last thing they want to think about is what will happen to their assets if things don't work out. But financial experts say it's important for couples to have the "prenup" talk.
Alexa Von Tobel of LearnVest.com says, "A prenup is not an agreement that says 'I'm betting against our marriage,' what it really is saying is it's an insurance policy."
A prenup is a contract that spells out how assets will be distributed in the event of a divorce or death. According to Bankrate.com there are several reasons to consider a prenup:
- If you have stocks or retirement funds, own a home or business, or may be receiving an inheritance.
- If you have children from a previous marriage, or elderly parents to take care of.
- Finally, consider a prenup if one future spouse is wealthier than the other, or will be supporting the other through college.
Von Tobel says, "We recommend you sit down on a Saturday when you have lots of time and really walk through what's important to you for your finances." Couples should have the talk as early as possible. Be honest about why you want it, and fully disclose your assets.
Be sure the pre-nup is in writing, and the signing is witnessed, preferably by a lawyer. Scribbling something down on a cocktail napkin isn't going to work.
For more information about pre-nups link:
http://www.bankrate.com/finance/personal-finance/engaged-couples-sign-prenup-1.aspx
