Understand the ins and outs of financial planning in marriage

| Jan 20, 2020 | Divorce |

While couples do not necessarily plan to breakup in Texas or anywhere else in the country, things happen, situations change, and divorces occur. This is one reason that both partners in a marriage may want to understand the family’s complete financial condition. In a marriage, there is often one person who pays the bills and manages the household finances, but this common practice could cause difficulties later.

Prenuptial or even postnuptial agreements may be a good place for couples to start. If they begin the process early in the relationship, it may provide more commitment to a couple’s complete understanding of their financial picture together and as individuals. Each partner may bring different assets to the marriage, or down the road, one person might add assets from such things as an inheritance. Couples may own a business separately or together. There are any number of financial situations that should be well-defined.

Both partners in a marriage might want to consider in advance how they will handle property division and financial distributions if a divorce does eventually transpire. A full 10 percent of people studied who were involved in divorce learned of secret assets, and 14 percent found out about debt they were unaware existed. Some couples set up family trusts or utilize other estate planning tools to avoid these scenarios.

When it comes to financial planning or making divisions because of an impending divorce, an attorney who knows and understands the state laws might be very helpful. Mediation is one area where a law office might offer services to couples even before divorce proceedings begin. In any case, each party of a prenuptial or postnuptial agreement may want their own attorney involved just as they would in a divorce to guard their own best interests.