Pre Marital Financial Planning

Marriage changes your legal and financial world more than most people realize. Many couples are surprised to learn:

• Assets you owned before marriage may become partially marital. If you stop contributing to a pre-marital investment account but the account grows during marriage, that gain could be considered marital property.
• Income earned during the marriage is generally considered marital, regardless of whose name is on the paycheck or account.
• Using separate funds for joint purposes can unintentionally "commingle" assets, making it hard to prove what was yours originally.
• Debt is shared more than you think. Even if one partner takes out a loan, it could become a shared responsibility depending on your state and how the debt was used.

Things to Consider Before Saying “I Do”

• Do you have savings, investments, or retirement accounts built before the relationship?
• Do you own a home or business?
• Do you expect to receive an inheritance?
• Is one of you carrying more debt?
• Are you planning to pause or slow your career (e.g., for children or relocation)?
• Will you file joint or separate taxes?
• Will you share all accounts or keep some separate?
• Are family members helping with wedding expenses or a down payment?
• Are you thinking of starting a business, going back to school, or moving for one partner’s job?

Understanding a Prenuptial Agreement

A prenup (prenuptial agreement) is a legal document that outlines how assets, debts, and financial matters will be handled in the event of divorce or death. It’s not just for the ultra-wealthy or celebrities. It's a financial planning tool that offers:

• Clarity on what remains separate vs. marital
• Guidelines for managing debt
• Provisions for spousal support or lack thereof
• Protection for family assets, inheritances, or businesses
• Reduced legal costs if separation does happen

Even if you don’t want a prenup, understanding how your state treats assets and income in marriage can help you plan wisely.