On behalf of Cooper & Tanis, P.C. posted in divorce on Tuesday, September 1, 2015.
Finances can play a significant role in undermining a Colorado marriage, especially if issues such as secret spending or hidden accounts are uncovered. Even those who imagine that their marriages will last forever can fall victim to such activities, at which point the existence or lack of a prenuptial agreement could become a concern. Although the creation of a prenup may seem like a death sentence to a marriage, it can actually produce the opposite effect as it establishes grounds for financial fidelity.
In such an agreement, it is important to address various aspects of finance both now and for the future. For example, it is crucial that each partner understands the current scenario, being aware of loans, revolving credit accounts and assets. A couple should also create a plan for spending, borrowing, and paying off debt. Although a budget may address such issues, a prenup is a more formal outline of these commitments. Those who will be entering a second marriage may want to safeguard assets that are intended for children from another marriage. Others may want to limit access to their resources as step children enter the picture.
It may be important to consider possible relocation plans as a prenup is created. Because property division laws can vary from state to state, a prenup may be an ideal way to bypass undesirable outcomes if a divorce does occur. By referring back to a prenup, a couple may avoid the undesired sharing of a business or retirement account at the end of a marriage.
Legal challenges can still undermine a prenup that hasn’t been handled carefully. In designing a prenuptial agreement, it is advisable for each party to obtain separate representation.