Marriage Finances and Prenuptial Agreements

finances, Aurora family law attorneyIn the United States, an estimated 40 to 50 percent of all first marriages end in divorce. That number jumps to 60 percent for second and subsequent marriages. In survey after survey, one of the top issues that cause major rifts between married couples is finances. Different spending habits, different saving habits, and other differing perspectives on how money should be handled can do a lot of damage in a marriage. For example, one survey revealed that 47 percent of the couples surveyed had completely opposite spending and saving habits, which led to much stress in the marriage.

These statistics make a good argument as to why it is critical for engaged couples to have serious discussions regarding finances before they get married. Knowing how your future spouse handles money can help avoid big surprises after the vows are exchanged.

Future Career Goals

Knowing what your significant other’s future career and income goals are will help give you good insight of where money ranks in their priority list. Does your future spouse have a career which requires long hours away from home? Or does your future spouse have a more family-oriented outlook and is not as concerned with advancements in their line of work? Understanding what each other’s future goals are will help the two of you achieve balance in your marriage.

Credit History

If the two of you plan on purchasing a family home – or other property – then it is critical for both of you to be fully aware of the other’s credit history and credit score. How upsetting would it be to marry someone only to find out that their poor credit history may negate your good credit history when it comes to applying for a mortgage, credit cards, or a car loan? It is also important to know if there is any debt that is being brought into the marriage in order to ensure that debt does not become commingled between the two of you.

Savings and Retirement Goals

Just as important it is to know of each other’s debts, it is also important to know what type of saver your future spouse is. This will give an indication of their spending habits and how good they are at planning for the future. Speaking of the future, couples should also share with each other what type of retirement plans they have set up and to which they are contributing. This may be especially important for older couples. Are you both on the same page when it comes to how you plan on spending your “golden years?”

Taking Action in Advance

Although these financial discussions may feel unromantic, they are crucial if you are planning on spending the rest of your life with this person. As you learn more about one another financially, you may also want to consider drawing up a prenuptial agreement in order to protect yourself should you find that these differences in financial outlooks end up creating too much of a chasm for you and your spouse to overcome.

If you would like to discuss what your options are regarding a prenuptial agreement, contact an experienced DuPage County family law attorney. Schedule your confidential initial consultation by calling [[phone]].

 

Sources:

http://www.divorce.usu.edu/files/uploads/lesson3.pdf

http://www.cnbc.com/2015/02/04/money-is-the-leading-cause-of-stress-in-relationships.html

http://money.usnews.com/money/blogs/my-money/articles/2016-06-16/vital-money-questions-to-ask-your-partner-before-walking-down-the-aisle

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