Health
Prenups, Postnups and Planning
The news of a pending divorce between former GE CEO Jack Welch and his second wife Jane once again brought attention to the concepts of marriage, divorce and the value each partner holds in a relationship.
Previously, it was Lorna Wendt who was at the center of the controversy. When her husband Gary, former CEO of GE Capital, asked for a divorce and offered her 10 percent of the assets attained over their 32-year marriage, Lorna fought for the value of her role as a wife and mother.
Since that groundbreaking case, Lorna has reached out to help other individuals build, maintain and, if necessary, dissolve partnerships with a focus on equality, knowledge and dignity. And while for years prenuptial agreements have been seen as a way to protect only one party's interests or assets, she sought to redefine the notion of them as a way for partners to build a strong foundation for their marriage.
If you're gearing up to say your own "I dos," here are some tips for preparing the prenup.
1. Start With Discussion
The process should start with a discussion between partners about their views on money, how they'll both be valued in the relationship, their future goals and how they want their partnership to be viewed legally. Many couples don't address issues like how they'll spend and save, how a stay-at-home spouse will be valued in the relationship, and what would happen should they face divorce.
Remember, the divorce rate in our country is at 50 percent. Yet discussing the issue doesn't doom your relationship to that fate. When you get in the car every day you're not convinced a crash will happen, but you still put on a seatbelt. Think of the prenuptial discussion as a way to make decisions about the legality of your partnership so that, if divorce happens, you can save time, money and heartache by having decisions already made. It isn't a sign of distrust, but the ultimate symbol of openness and honesty as you enter the partnership.
2. Protect Your Union
If you and your future honey agree that you'll build an equal partnership, then you need to examine the laws in your state. Most states in the U.S. don't support the notion that both partners own an equal share in the assets attained during their marriage. In fact, most states leave it for a judge to decide if the case goes to court. Responsible partners take time to understand the laws around marriage and divorce and take the initiative to define their partnership legally to reflect the discussions they've had on the issues.
3. Do It Right
In order for a prenuptial agreement to be watertight it's necessary for both parties to have their own lawyers so that, at a later date, there are no issues of coercion or persuasion by one partner. After you have your initial discussion about your partnership, speak with legal counsel to get advice on how to proceed. Remember, even if you don't have a great deal of assets today, there may come a time when your partnership has more value and it is always beneficial to discuss your perception of money and the value of each partner early in the relationship.
Marriage contracts are not only for those approaching marriage. Many married couples today are considering the possibility of a postnuptial agreement -- a marriage contract created after the union has been legalized. And while prenuptial agreements can promote marriage as a 50/50 partnership, they can also be used in second marriages to protect assets being brought into the marriage and ensure the future of children from previous relationships.
Previously, it was Lorna Wendt who was at the center of the controversy. When her husband Gary, former CEO of GE Capital, asked for a divorce and offered her 10 percent of the assets attained over their 32-year marriage, Lorna fought for the value of her role as a wife and mother.
Since that groundbreaking case, Lorna has reached out to help other individuals build, maintain and, if necessary, dissolve partnerships with a focus on equality, knowledge and dignity. And while for years prenuptial agreements have been seen as a way to protect only one party's interests or assets, she sought to redefine the notion of them as a way for partners to build a strong foundation for their marriage.
If you're gearing up to say your own "I dos," here are some tips for preparing the prenup.
1. Start With Discussion
The process should start with a discussion between partners about their views on money, how they'll both be valued in the relationship, their future goals and how they want their partnership to be viewed legally. Many couples don't address issues like how they'll spend and save, how a stay-at-home spouse will be valued in the relationship, and what would happen should they face divorce.
Remember, the divorce rate in our country is at 50 percent. Yet discussing the issue doesn't doom your relationship to that fate. When you get in the car every day you're not convinced a crash will happen, but you still put on a seatbelt. Think of the prenuptial discussion as a way to make decisions about the legality of your partnership so that, if divorce happens, you can save time, money and heartache by having decisions already made. It isn't a sign of distrust, but the ultimate symbol of openness and honesty as you enter the partnership.
2. Protect Your Union
If you and your future honey agree that you'll build an equal partnership, then you need to examine the laws in your state. Most states in the U.S. don't support the notion that both partners own an equal share in the assets attained during their marriage. In fact, most states leave it for a judge to decide if the case goes to court. Responsible partners take time to understand the laws around marriage and divorce and take the initiative to define their partnership legally to reflect the discussions they've had on the issues.
3. Do It Right
In order for a prenuptial agreement to be watertight it's necessary for both parties to have their own lawyers so that, at a later date, there are no issues of coercion or persuasion by one partner. After you have your initial discussion about your partnership, speak with legal counsel to get advice on how to proceed. Remember, even if you don't have a great deal of assets today, there may come a time when your partnership has more value and it is always beneficial to discuss your perception of money and the value of each partner early in the relationship.
Marriage contracts are not only for those approaching marriage. Many married couples today are considering the possibility of a postnuptial agreement -- a marriage contract created after the union has been legalized. And while prenuptial agreements can promote marriage as a 50/50 partnership, they can also be used in second marriages to protect assets being brought into the marriage and ensure the future of children from previous relationships.
