In this Retire Sooner Highlight, we’ll be discussing an important topic with forensic accounting expert and author Tracey Coenen. Prenuptial agreements are a crucial aspect of financial planning for couples to protect their assets and secure their future. Tracey will be sharing her insights on why prenups are necessary and what to consider when getting one. So, if you’re engaged or planning to be, this is an interview you won’t want to miss!

Retire Sooner Highlight: Forensic Accounting Expert Tracey Coenen Discusses the Importance of Prenups

Introduction

Prenuptial agreements, commonly known as prenups, are contracts that people sign before marriage to establish what will happen to their assets if the marriage ends in divorce. Many people avoid prenups because they believe they are a sign of distrust, but they can actually provide a significant amount of protection and control. In this article, we’ll explore why prenups are important and how they can help you achieve your retirement goals.

Benefits of Prenups

Prenups offer a variety of benefits to individuals who are looking to protect their assets. Here are some of the most significant benefits.

Separating Finances

Finances are one of the most contentious issues during a divorce. Prenups help to separate finances in case of a divorce. This means that each partner maintains control over their own financial assets.

Control of Division of Assets

Prenups also offer a way to take control of how things get divided in the event of a divorce. Instead of leaving it up to the court, couples can outline how they want their assets to be divided.

Judge Understanding of Finances

Prenups tell the judge how the couple intends to divide their finances. The judge is then able to take the prenup into account when making decisions about the divorce.

Preparation or Contract

Some people view prenups as a preparation for divorce, but it’s actually a contract. It helps couples protect their assets and ensure that they are divided fairly if the marriage ends.

Divide Money in Case of Divorce

Prenups are a fantastic way to divide the money in case of divorce. Couples who establish prenups have a clear plan for how their assets will be divided, which can reduce stress and conflict.

Control of Court

With prenups, the couple is not at the mercy of the court. They are able to take control of their own destiny and determine how their assets will be divided.

Protection From Lawmakers

It’s better to have a prenup than to be at the mercy of something that the lawmakers did. Laws regarding divorce can change over time, and couples who have prenups can ensure that their assets are protected, no matter what the law says.

FAQs

1. Do I need a prenup if I’m not wealthy?
   • Prenups are not just for the wealthy. Anyone who wants to protect their assets or ensure that they are divided fairly in the event of a divorce can benefit from a prenup.
2. Can a prenup be modified after marriage?
   • Yes, prenups can be modified after marriage with the agreement of both partners.
3. Will a prenup make my marriage more likely to fail?
   • No, a prenup does not increase the likelihood of divorce. It’s simply a way to protect your assets and ensure that they are divided fairly if the marriage ends.
4. Do prenups only apply to financial assets?
   • No, prenups can cover a range of assets, including property, investments, and businesses.
5. Can a prenup be challenged in court?
   • Yes, a prenup can be challenged in court, but the challenge must be based on specific legal grounds.

Conclusion

Prenups are an effective way to protect your assets and ensure they are divided fairly in case of divorce. They offer couples a way to take control of their finances and avoid the uncertainty of leaving their finances in the hands of the court. Tracy Coenen, a financial fraud expert, advocates for the use of prenups as an essential tool in protecting one’s financial future. Don’t let misconceptions about prenups hold you back from achieving your retirement dreams.