Marrying into Debt? How Prenups Safeguard Both Sides of the Aisle
Getting married is supposed to be about joining lives together in unity. But these days, many soon-to-be newlyweds are coming into marriage carrying significant personal debt. With the average American carrying around $90,000 in debt, “for richer or poorer” suddenly takes on a whole new meaning.
If you’re tying the knot in Massachusetts, a prenuptial agreement can help you avoid getting saddled with your spouse’s debt. Here’s how:
Define Whose Debt is Whose
A prenup allows you to clearly specify who is responsible for debts. This includes student loans, credit cards, medical bills, or even past-due taxes.
Protect Your Spouse Too
Prenups aren’t just for the wealthy to protect assets. They can also protect the person marrying into debt. With a prenup, your spouse agrees to take responsibility for their own debts.
Limit Your Liability
In Massachusetts, both spouses are usually responsible for debts incurred during the marriage. With a prenup, you can limit your liability for debts your spouse takes on. This prevents you from getting saddled with massive credit card bills or loans you didn’t agree to.
Knowledge is Power
Simply discussing each other’s finances openly and honestly before marriage can avoid ugly surprises down the road. Creating a prenup provides an opportunity to come clean about any lingering financial baggage before you become legally bound together.
While less romantic than flowers and cake, a prenup is one of the wisest investments you can make in your marriage. Protecting each other from premarital financial burdens lets you start your union off on far steadier financial footing. When it comes to marriage and debt, an ounce of prenup prevention is worth a pound of creditor headaches down the road.
Disclaimer: The content provided in this blog is for informational and educational purposes only. It should not be construed as legal advice and readers should not act upon any information provided without seeking professional legal counsel. The author does not guarantee the completeness or accuracy of the information provided. This blog is not intended to create an attorney-client relationship between the author and the reader.