For high net-worth couples, a major headache that delays divorces (or even the decision to divorce) is the property division process. This is because not only do high net-worth couples have more money and assets to divide, but also their assets are often illiquid and harder to value (or agree on a value). However, there are ways that these high net-worth couples can mitigate those headaches.
Is property division mitigation really needed?
According to the U.S. National Center for Health Statistics, nearly 5 million people marry each year. And, by some estimates, more than 50% of them will divorce. This ranks the United States 13th in the world for highest divorce rates.
You both are still in love now, but unfortunately, statistically, you may end up divorced.
This is why you both should think about what a divorce should look like now, while you still love each other. Plus, if you plan a potential divorce now, you can avoid the Earth-shattering effects of divorce.
Prenuptial and postnuptial agreements
Prenuptial and postnuptial agreements are how people protect themselves in advance from the worst effects of a potential divorce. A prenuptial agreement is done prior to a marriage, and a postnuptial agreement is done after marriage. Both are written agreements (contracts) that dictate and control how a divorce will occur, including the property division process, child support, spousal support and every other aspect of a divorce.
They can help your relationship before you marry
It may sound odd, but prenups can help your relationship because it forces you and your future spouse to talk about your hopes, dreams and your future. You are forced to talk about money, kids, building a family, etc. Even postnups can have this same effect on relationships because, again, it forces couples to have those uncomfortable talks and get on the same page.
Plus, Delaware County postnups can be used to help rocky marriages get back on track. For example, if one spouse had an extramarital affair, rather than divorce, a postnup can be used to put what the non-cheating spouse needs to stay in the marriage. And, penalties can be written in, should the cheating spouse cheat again. This same structure can also be used for spouses with addictions and other bad behaviors.