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Why a Premarital Agreement Might be Right for You

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September 26, 2021

Why a Premarital Agreement Might be Right for You

According to the CDC and the National Center for Health Statistics, over 2,000,000 marriages happen each year, and nearly 750,000 marriages end because of divorce.1 Often times before getting married, people may talk about their dreams, goals, starting a family, where they want to live, and how many kids they want to have. However, one of the common mistakes is not talking about their finances and what would happen to their money and assets in the event of a divorce.

In the United States there are two types of states that people live in, as it relates to how marital property is split: community property vs equitable distribution property states. In a community property state, there is an absolute 50/50 split of all assets and property that are acquired during marriage. Equitable distribution states do not have to necessarily split assets 50/50 during marriage, but more assets could be considered marital property. When getting married, no one ever thinks they are going to divorce, but having the discussion with your partner about a pre-nuptial or post-nuptial agreement can help potentially alleviate any financial anxiety and surprises in the event the marriage ends.

There are several reasons couples may want to consider a pre-nuptial agreement:

  • It forces partners to communicate openly about money and learn about each other's attitudes and habits about money
  • You can negotiate what is best for each partner when there is potentially less negative emotion involved
  • It provides both financial and relationship boundaries. Some couples can negotiate what happens if there is violence, adultery, or if there are kids involved, and anything else that is important to them
  • Though pre-nuptial agreements may cost upfront, it can help save in legal fees in the future

In addition, some may consider pre-nuptial or post-nuptial agreements if they fall into any of these demographics:

  • One or both parties have been previously married
  • Businesses are owned by one or both partners
  • One partner may have more debt going into the marriage than the other
  • One or both partners have accumulated wealth individually that they'd like to keep separate
  • One or both partners have children

When it comes to building and protecting your future and current wealth, having a discussion about pre-nuptial agreements with your partner, can be a healthy discussion to have and can save one or both partners financial worries in the future.


1 https://www.cdc.gov/nchs/fastats/marriage-divorce.htm

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About the author

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Cristina Briboneria

Vice President, Private CFO®

Cristina Briboneria, CFP®, ADPA®, AWMA®, Vice President, Private CFO®.

Cristina is originally from Los Angeles, California but has lived in Houston, TX, Cleveland, Ohio, and now resides in Atlanta, Ga. Cristina graduated from Oberlin College with degrees in Mathematics and History. She earned her Certified Financial Planner(TM) designation from Oglethorpe University.Cristina has also been recognized in Atlanta Magazine as one of Atlanta's Five Star Wealth Managers.

Cristina joined Ameriprise Financial in 2005 and was one of the Top 10 Advisors in her peergroup at the end of her first year. She was rewarded the Mercury Award, Centurion Award, and First Year Top Achiever Award for high achievement. She quickly moved into leadership positions as an Advisor Coach and District Manager in 2006. As a District Manager she earned the Circle of Success award when she lead her team to Top Five in the country throughout the entire company.

Since joining oXYGen, Cristina has built a successful practice of over 175 clients having awide range of demographic from business owners, corporate executives and employees, teachers, clergy, and non-profit organizations. She wanted to help build a company that was tailored specifically towards Gen X & Y."These generations have been overlooked and will be a driving force in our future economy. They will be a force to be reckoned with--many of of my clients are purpose driven individuals wanting to make a difference in their places of business but also wanting the knowledge of how to be financially responsible and successful."

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.
Background and qualification information is available at FINRA's BrokerCheck website.

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