For many Maryland couples, concerns over finances top the list of priorities when a marriage seems to be heading toward divorce. Virtually everyone knows of a couple who experienced serious financial damage due to divorce, and some have already been through the process once and emerged worse for wear. It is important to keep in mind that spouses are not powerless when it comes to preventing divorce-related financial losses. The following tips can help couples minimize financial damage and preserve as much wealth as possible.
Perhaps the most important piece of advice is to ensure that a prenuptial agreement is in place prior to getting married. This is not easy to hear once there is already a degree of marital disharmony, and no such contract was signed. However, couples who did not make sue of a prenup can always draft a postnuptial agreement after they have exchanged vows.
Discussing a postnuptial agreement is often perceived as a difficult proposition, but this does not always have to be the case. Many couples choose to outline their wishes in a postnup to add an extra layer of preparation to their estate planning needs. A postnup can clearly state how assets will be preserved from division during divorce, and retained for the benefit of various heirs. This is especially important for families that contain children from a previous relationship.
Postnuptial agreements are not only for couples who suspect that their marriage may end in divorce. These contracts are best viewed, and presented to one’s partner, as savvy financial planning tools. In many cases, Maryland couples can draft a postnup that in the end, will never need to be called into effect.
Source: The Missourian, How to Ensure Divorce Won’t Wipe You Out Financially, No author, Oct. 7, 2013