Remembering a Prenuptial Agreement for Your Next Relationship

 Posted on July 26, 2018 in Prenuptial Agreements

Going through a divorce is when you are most likely to realize how useful a prenuptial agreement can be. The agreement can save time on the negotiation of the division of properties and spousal maintenance. Unfortunately, it is too late to create a prenuptial agreement or even a postnuptial agreement if your divorce has already started. You should remember this lesson when you enter your next major relationship that involves sharing assets with your partner. Creating a prenuptial or co-tenancy agreement is a practical step towards protecting individual assets if you have previously divorced.

Second Marriage

There may be several reasons why you did not create a prenuptial agreement before your first marriage:

• Divorce seemed unlikely;
• You did not feel comfortable asking your partner for an agreement; or
• You did not have enough premarital assets to believe that an agreement was needed.

Now that you have experienced divorce, you should be more aware of it as a possibility and more comfortable discussing the subject. You are also at a time in your life when you likely have more individual assets and financial obligations. You may be paying child support or spousal maintenance from your previous marriage. Your divorce may have diminished your individual assets, but a second divorce could devastate them. You can use a prenuptial agreement to protect your financial stability by affirming your rights to your vital properties and limiting additional financial obligations.

Co-Tenancy

Even without marriage, living with a new partner can tie you together in terms of finances and assets. People who cohabitate without marriage often rent or purchase a home together, as well as share living expenses and major purchases. If they break up, they may each have an equal right to or responsibility for the home. A co-tenancy agreement can determine:

• Who will retain the home if the parties break up;
• Each party’s obligation towards mortgage payments, rent and/or household expenses;
• What happens if one party defaults on his or her payments;
• Who has a right to sell the home; and
• How the proceeds from the sale will be divided.

Creating an Agreement

Discussing a prenuptial or co-tenancy agreement may put a damper on a budding relationship. However, creating such an agreement is a precaution and not a guarantee that it will be used. You are more likely to come up with an amicable agreement when you are getting along with your partner than when you are fighting. A DuPage County family law attorney at Calabrese Associates, P.C., can guide you through creating a prenuptial agreement. Schedule a consultation by calling 630-393-3111.

Source:

https://www.edelmanfinancial.com/education-center/articles/financial-todo-list-for-second-marriages