Why are prenups recommended for remarriages?
Prenuptial agreements are no longer just used by very wealthy people and, in fact, can be highly beneficial for those entering into second marriages.
Many people in Utah who are preparing to get married may well be doing so for the second or even third time. Some of these new marriages come after previous divorces while some come after one person is widowed and eventually gets married again. No matter the reason, there can be some unique issues that people in remarriages must address. These issues often relate to how finances are handled, especially when children are involved.
Prenuptial agreements were once considered to be only needed by very wealthy persons and were simply contracts that protected assets if the couple eventually got divorced. Today, however, these marital contracts are important for many other reasons, especially in remarriage situations.
Outlining daily responsibilities
Bankrate recommends that people who get married for the second time with children from previous marriages should keep their finances largely separate. A prenuptial agreement can be one way of identifying who will have responsibility for what bills or other obligations. It can even be used to delineate who should do what household task. A prenup can essentially set up how a remarried household will function.
CNBC reiterates the importance of not mixing assets after a remarriage. If new purchases require contributions from both spouses, great care should be taken to identify where the funds will come from and how any ownership should be handled.
Estate planning with great detail
A will or even a trust is always important and can help family members in the wake of losing a loved one. However, these traditional methods of handling estate planning may not always be sufficient for blended families. A prenuptial agreement can be a vital complement to other estate planning tools. Every single asset can be carefully detailed in a prenup. This gives each spouse the ability to ensure that special family heirlooms or assets are kept within bloodlines.
According to Wealth Legacy Group, ensuring that previously separate assets do not become intermixed during the marriage will be an important part of preserving the spirit of the prenup after the death of one or both spouses.
Financial conversations are a must
While often difficult, broaching the topic of money before a marriage has taken place is always better than after. Utah couples considering getting married when they have kids from earlier marriages should always get the input of an attorney. Learning how a prenuptial agreement can benefit their children is an essential step in getting their new marriage off on a good start.