Prenuptial agreements have become more and more popular today and not just with the wealthy. Those who are entering in to a second (or third) marriage are using this legal document to plan not only for their future, but for children from previous relationships and other heirs.
Because money is one of the more common stresses in a marriage, it's important to be open and honest about all of financial obligations when discussing a prenup. This can help you in maintaining your current standard of living and learning about your partner's money philosophy.
It's important to address any concerns you have about your assets. For example, you need to include which assets of yours will be going to children from a previous marriage. Another possible concern is determining how much of your assets will be going toward your soon-to-be spouse's debt. This can help you determine if you need to protect a business interest, too.
If you are required to by a court order or legal document, you may have to maintain a life insurance policy with your ex-spouse listed as a beneficiary. This means you may not be able to list your new spouse on your life insurance or another policy may be needed.
As you can see, many factors should be considered when entering into a second marriage. Protecting your assets to give to your children is important, but it is also important to know exactly how your new spouse views his or her finances and how his or her debt will affect you. An attorney can help you determine if a prenuptial agreement is in your best interests.
Source: WMUR9, "Money Matters: Financial and estate planning for second marriages," Marc Hebert, Aug. 18, 2016