Premarital Financial Planning Part 4: Get Your Legal Life in Order, and Protect Your Family

The Budget Savvy Bride

There are many ways to protect yourselves and your family, mainly centered around the legal documents and types of insurance I discuss below. If your eyes glaze over at those topics, or you want to avoid them, that makes it all the more important to learn a bit about them.

As a quick reminder, here’s a bit about me: I’m Adam Kol, The Couples Financial Coach. I help couples navigate sticky money situations together, whether they’re combining finances or not.

Premarital Financial Planning Part 4: Get Your Legal Life in Order, and Protect Your Family

Ah, prenups, AKA prenuptial agreements. To many people, its reputation precedes it. To the unacquainted, Forbes explains it as “a private agreement between a couple signed before they get married which sets forth the division of their assets in the event of divorce or death.” A postnup, or postnuptial agreement, is a similar document executed by a couple who is already married.

Prenuptial and Postnuptial Agreements

These documents can and should be drafted to protect each spouse, ensuring they will be treated fairly in case of divorce. For example, imagine you take care of the kids and home so your spouse can build a business. If anything should happen to your marriage, you deserve a piece of that business, right? After all, even its future success would owe much to the earlier efforts, which your contribution made possible. Prenups or postnups can provide for this.

There are many recommendations, products, and opinions about protecting your nest egg and your family. First, the legal documents. A will or a trust are standard documents that can govern how your estate, will be distributed after your death.

Protection and Legacy Planning: The Legal Documents

Life insurance pays a benefit if the insured person passes away while the policy is in force. The two most common types are term insurance, which usually lasts for a fixed number of years, and permanent insurance, which lasts until the insured person dies (or to age 100). Disability insurance covers some of your salaries if you get hurt and can’t work.

Protection and Legacy Planning: Insurance

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