Many people think about their financial future, and consult an accountant or financial planner to secure their assets and plan for either partial or full retirement. Likewise, it is common for individuals to prepare for illness and even death by purchasing different types of insurance. Divorce planning is equally as important as these other safety measures. Divorce planning tools, such as prenuptial agreement and postnuptial agreements, can protect an individual’s assets in the event that their relationship breaks down.
Unfortunately, many Americans do not take any steps to secure their finances when it comes to their marriage. This leaves their hard-earned assets extremely vulnerable if their circumstances ever change and their marriage dissolves. Planning for divorce is imperative, even if the marriage is strong and neither party foresees filing for divorce.
“Some people think planning for divorce is planning to get divorced, but it is not,” divorce attorney Heather O’Connor of O’Connor Family Law explains. “When you buy a new car, you buy insurance too, but not because you want to total your car! You get insurance to protect your assets in case the unthinkable happens. The same should be true for divorce.”
There are several different ways to plan for a divorce that can save significant time, money, and heartache in the future. Planning for divorce in the best of times allows couples to protect the assets they have worked so hard to build, and helps ensure an equitable division of accounts, property, and other assets—as well as honor sentimental items—by forming a legally binding agreement that addresses which party will receive specific items or property.
Simply put, prenuptial agreements are written, formally signed agreements in which parties agree to a division of their assets and debts prior to marriage. Similarly, a post nuptial agreement is a written agreement signed before a notary that details the division of a couple’s debts and assets after they are married, but before any separation occurs.
No matter how strong a marriage is, it is still important to create a divorce plan. By preparing for the worst, you don’t have to worry about the rest.
