November 5, 2014 Fact of the Day: Do Wealthy Investors Believe in Prenups?
Did you know that 40 percent of households with more than $25 Million believe their children should have a pre-nuptial agreement prior to marriage?
Wealthy households want their children and grandchildren to be protected, even more so than in the past. In fact, at least half of these investors feel their financial advisors should provide educational materials for their children.Is a pre-nuptial agreement right for your children? Of course. Regardless of the level of wealth of you or your child, it's a great protection to have a plan in place should things not go as well as expected. Make sure that any assets being brought into the marriage are identified. Research shows that three-quarters of wealthy households combine all of their assets....but the oldest households are the least likely to do so....perhaps this is because there may be second marriages involved.
One tip is to keep a joint account and separate accounts. Joint expenses can be identified and the appropriate amounts contributed. Spelling out in the pre-nuptial agreement how matters may be resolved in the future will allow for better outcomes should things not turned out as planned.