We love Suze Orman, so we decided to put together a round up on what she thinks about prenups.
Are you searching for an unbiased opinion about prenups? Perhaps you truly want to look at it from a business standpoint rather than something emotional. Why not get advice from financial advisor Suze Orman? After all, she ran a self-titled CNBC show from 2002 until 2015, which garnered her exclusive fame for her work as a financial advisor. Not only did she establish the Suze Orman Financial Group in 1987, but she is a published author and podcast host. Here’s what she told CNBC Make It: “I get too many emails from older women and men telling me that they’ve just lost everything because of a divorce.” Keep reading for advice from Suze Orman about prenups.
How Can You Approach a Discussion About Prenups?
Bringing up a prenup with your spouse can feel like a sensitive topic to discuss. Luckily, you can take a couple of basic steps to raise the subject, and financial expert Suze Orman is here to help. The worst thing to do is draft a prenup on your own and present it to your partner to see if they like the terms. Instead, you have to arrive at terms together to ensure everyone’s happiness and fairness.
Suze Orman Explains That You Have To Talk About Money or Your Marriage Is Doomed
According to this financial expert, “If you cannot talk money to the person that you are about to marry, you are doomed for failure because money is going to run through your relationship more than anything else.”
So, the easiest way to approach the subject is to discuss your financial interests and goals with your fiance. Most young couples today talk about their finances at least once a week; however, according to TD Bank’s survey, 48% still hide debt from their significant other.
It’s best to have an honest yet direct conversation with your future spouse about your checking and savings accounts along with credit card debt, personal loans, and other financial matters. Pay attention to how much money you spend daily to budget for future goals accurately.
She Says You Should Never Rush Into a Prenuptial Agreement
“Do not do it on the way to the chapel,” Suze Orman says about prenups. The last thing you want to do is get a prenup drafted and signed as quickly as possible. Understandably, you want to have something in place before you get married, but it’s a contractual obligation between you and your spouse that should be taken seriously.
It should take at least six months to plan and sign a prenup to ensure that everything is covered and approved by the court. Rushing into the process may draw scrutiny, affecting whether the court views it as a valid agreement.
Why Is a Prenup Useful?
You don’t have to be rich to draft a prenup. Suze Orman said, “I was a waitress until I was 30 years of age making $400 a month — and look at me today.”
You never know what might happen, so everyone should protect themselves with a prenup. That way, they can help keep any money they accumulate before and during the marriage. According to a Bank of America survey, about 28% of millennial couples don’t use traditional joint bank accounts, even after getting married. Instead, they prefer to keep their finances separate. Agreeing to prenups can help for multiple reasons.
- They Shield You From Your Spouse’s Debts
Anything acquired during the marriage, including debts, could be considered community property or marital property, and may be considered the responsibility of both people. That means if you divorce, you could be responsible for your ex’s debts. Luckily, a prenup can save you from any obligations that your partner incurred during your marriage.
- Prenuptial Agreements Protect Children and Inheritance
Do you or your fiance have children from a previous relationship or marriage? You can easily explain expectations regarding assets that you may want to hold on to for these children in a prenup. That goes for an inheritance, property division, and other details.
- Prenups Create a Trustworthy Bond
Many couples mistakenly think that a prenup is insulting and unromantic. However, you can address your expectations during the marriage, such as each person’s role and responsibility.
Most engaged couples are busy creating a guest list, planning a color palette, and dreaming about their honeymoon. While some couples don’t want to have a prenup, others are not even thinking about one. However, don’t assume everything will take care of itself when problems arise.
Julia Rodgers is HelloPrenup’s CEO and Co-Founder. She is a Massachusetts family law attorney and true believer in the value of prenuptial agreements. HelloPrenup was created with the goal of automating the prenup process, making it more collaborative, time efficient and cost effective. Julia believes that a healthy marriage is one in which couples can openly communicate about finances and life goals. You can read more about us here Questions? Reach out to Julia directly at [email protected].