Despite having no intention of separating from your partner in the future, it’s smart to plan for the worst before saying, “I do.” As there are 4.08 divorces per 1,000 people worldwide, it’s sensible to protect your finances and future before committing to married life.
Don’t look back on your life with regrets. Read on to learn about the best ways to protect your finances before marriage.
Organize a Prenuptial Agreement
A prenuptial agreement might sound like the opposite of romance, but it’s a responsible action to take before walking down the aisle. You might not like the thought of suggesting a prenup to your other half, but they might be more willing to sign it than you think. As they’ll want the best for you, regardless of what happens in your relationship, they might have no qualms about signing on the dotted line.
Also, it might be music to your ears to learn that a prenups are becoming much more common, and you might feel more convinced to pursue one after learning about pre nuptial agreements and why they are getting more popular. For instance, they not only protect your finances, but a prenup could be crucial for preserving your assets for your kids. Also, it will provide your partner with a clear idea of the distribution of any assets, income, or debt should your marriage end in divorce or dissolution.
Keep Your Finances Separate
If financial security and independence are important to you before, during, and potentially after your marriage, you must keep your money separate from your spouse. As soon as your funds mingle, the money will become marital property, which may make you financially vulnerable should you one day divorce your partner.
If you want to protect a personal account but share separate funds with your partner, you could always open a joint account together. It will allow you to share specific money without risking your hard-earned income. However, you must bear in mind that separating bank accounts might not be enough to protect your finances without a prenuptial agreement.
Split Real Estate Investments
If you own one or more properties or often invest in real estate, you would be wise to separate your real estate investments from your other half. Keep a paper trail of any properties you own, renovations, and maintenance tasks to ensure that there’s no question about who has invested their time and attention into the portfolio.
Keep an Accurate Record of Documents
It’s smart to start and maintain an accurate record of every document before and during your marriage. Keep an accurate record of all finances, such as:
- Mortgage payments
- Retirement funds
- Bank accounts
- Financial investments
- Receipts for expensive goods
Also, if you’re a business owner, consider organizing a professional valuation of your company before marriage. By doing so, you’ll protect your and your organization’s finances.
The above steps might not seem like the most romantic actions to take before marrying your other half. However, you might be thankful for your forward-thinking actions if you and your partner one day decide to seek a divorce.