Protecting yourself from a spendthrift spouse

On Behalf of | Aug 26, 2021 | Prenuptial Agreements

When you fall hopelessly in love with someone, you may find it easy to look past certain faults. However, if you and your romantic partner have drastically different spending habits and marry without putting proper protections in place, you run the risk of your partner’s poor financial decisions impacting your own future.

Having a partner who overspends may not be grounds for a breakup. However, if you do decide to move forward with marrying someone whose habits are much different than your own, you may want to consider the following options.

Drafting a prenuptial agreement

A prenuptial agreement may give you a certain degree of protection if your spouse accumulates considerable debt during the marriage and your divorce. A prenup may be an especially smart idea if one of you plans to take out a loan to further your education during your marriage. A prenuptial agreement also helps protect assets you may have come into the marriage that you wish to preserve for any children from previous relationships.

Drafting a postnuptial agreement

If you already married a spendthrift spouse and have concerns that your partner’s spending habits may harm your marriage or future, consider a postnuptial agreement. A postnuptial agreement allows you to accomplish many of the same things as a prenuptial agreement. However, the key difference is that you execute it after, rather than before, you marry.

While creating a prenuptial or postnuptial agreement helps protect you should something unanticipated occur, it is important that you take the time to consider all angles and draft an agreement that truly reflects your personal interests.