Finances in the average marriage are stressful enough, but adding one or two high-net worth individuals to the occasion ramps things up even more.
One of the best ways to alleviate some of these concerns is to have open lines of communication about money well in advance of tying the knot and as you spend more years with your significant other.
With high-net worth, spending can take on a variety of different outlooks. Some couples are freer and looser with purchases, especially if they’re tied to business or travel, while others are much tighter. Having a conversation about drafting a spending agreement (whether formally or just by honor) helps lay out guidelines for both to follow.
Putting Children First
If you and your spouse have children (or are planning on having children), setting up financial guidelines for them at all stages of their life is an important conversation to have early and revisit often. Things like allowances, trusts and inheritances can be especially tricky with high-net worth individuals and large asset values.
The Prenup Conversation
If you’ve begun having these conversations and realize that the financial worth of one or both spouses is a roadblock, it may be worth drafting the framework for a prenuptial agreement. This could help both parties determine how much, if at all, they want to incorporate their children’s interest into living trusts or only set aside money for when the party of highest value is deceased or unable to make his/her own decisions.
A prenuptial agreement can be especially important in laying out plans for a potential split or other unforeseen issue to protect particular items or assets of value. Again, it all comes down to open communication with your partner and understanding the needs of your family.
If you’ve tried these methods and think you may need some additional advice about your own situation, the compassionate divorce and custody attorneys at Garretson & Holcomb, LLC can help you assess your options. Calling (513) 863-6600 today to learn more about we’ve helped clients in Butler and Warren Counties.