It has been reported that American couples, including those in Texas, who are committed as financial partners in their marriages are financially secure and enjoy better health. They are also said to live longer and are more financially secure than couples who fail to communicate about financial matters. That is, of course, if they can manage to get through the first three years of marriage. Disputes about money have been found to be most prevalent in those first few years of marriage and ranks even higher than arguments about children, religion and in-laws. Couples who are realistic are aware of the high percentage of failed marriages and protect themselves by drawing up prenuptial agreements.
The majority of engaged couples were found to be negative about financial discussions prior to marriage. However, it has been shown that couples who communicate and set boundaries and guidelines for mutual financial management have less financial disagreements. Matters that couples may want to include in their communications include credit cards and bank accounts. To encourage openness, it may be wise to authorize credit card and bank account holders to allow a spouse access to information. Opening at least one joint bank account -- even if it is only for household expenses -- may benefit the marriage.
Ongoing discussions about taxes are essential, as changes will occur during the marriage. Buying a home, starting a family, gifts exchanged between spouses, and other matters will affect taxes. Although death and divorce are subjects rather not discussed, it is important to have guidelines about property division in the event of such an unfortunate occurrence. A prenuptial agreement, drafted by experienced attorneys, will record how this process will be handled.
Other matters that need to be covered by open and honest communication include contributions to IRAs and 401(k)s, health insurance plans, and life insurance. Important decisions must be made timely to avoid disputes later. This may seem overwhelming, but the guidance and support of experienced attorneys in Texas can prepare couples for a long and happy marriage. Addressing all these issues -- and more -- in prenuptial agreements may avoid unpleasant and costly litigation in the future.
Source: myfoxdetroit.com, "Five Financial Changes to Make When Getting Married", July 6, 2015