Why Premarital Agreements Aren’t Merely for Couples With Sizable Assets
Entering into a premarital agreement is a wise decision for many reasons. A premarital agreement can help couples avoid future conflict by allowing them to agree upon certain critical issues before they are officially married.
However, some mistakenly assume that premarital agreements are only for those with high net worths or substantial assets. That’s not true. Even those who aren’t particularly wealthy should strongly consider entering into premarital agreements. Such an agreement can help them address such topics as the following:
Managing Bank Accounts
It is very advisable for couples to have joint bank accounts when they are married. Money is one of the most common sources of conflict in a relationship. If two spouses share a bank account, there will be greater transparency regarding their shared financial situation.
That said, even when spouses have shared bank accounts, they need to make decisions regarding how said accounts are to be managed. A premarital agreement gives them the chance to make such decisions early.
Making Credit Card Payments
Allowing credit card debt to rack up can significantly harm the stability of a marriage. Thus, two future spouses need to have serious discussions about how credit card payments are to be made. With a premarital agreement, the informal agreements made during said discussions become formal and official, which can guard against fights that might otherwise jeopardize the relationship later on.
Marrying someone involves not only intertwining their current life with your own current life but also intertwining your future. Regardless of one’s financial situation, it is smart to save money for retirement and other major life milestones. Some couples, therefore, use premarital agreements to officially specify precisely how much money they plan to set aside for their retirements.
Handling College Expenses
It’s not uncommon for spouses to get married when one has not yet completed their college education or plans on going to college in the future. In these circumstances, there may be questions regarding how the cost of a college education will be paid for.
This is a factor that can be addressed in a premarital agreement. While two future spouses may generally agree that it will be valuable for both of them to have college educations, they might understandably need to make certain practical choices regarding the way education will be funded.
These are just a few examples that may help you better understand why premarital agreements are not strictly for those with sizable assets. Virtually anyone can benefit from entering into a premarital agreement before getting married.
If you are considering a premarital agreement, you will need assistance from a legal specialist to ensure yours is as thorough as necessary. A Beverly Hills premarital agreement attorney at Baghdaserians Law Group, Inc can help you draft an agreement that will guard against future disputes and ensure both you and your soon-to-be spouse feel comfortable with certain key decisions that many couples fail to make as early as they should. Get in touch today by contacting us online or calling our offices at 310-299-4608.