When you and your spouse decide to get married, taking the necessary steps to protect yourself and your assets in case you divorce is a great way to shield your hard-earned finances. Unfortunately, there’s a stigma surrounding prenuptial agreements as a sign of doubt or distrust when, in reality, it promotes transparency. However, in order to sign an agreement, you’ll need full financial disclosure. Luckily, a Suffolk County prenuptial agreement lawyer can help you navigate the process of getting your financial report together. Keep reading to learn more about why disclosure is necessary.
Why Is Financial Disclosure Important?
When signing a prenuptial agreement, ensuring you disclose the full state of your finances to your partner is a great way to protect yourself in the event of a divorce. This is in the name of transparency, as it allows you and your partner to understand what you’re approving when signing your prenuptial agreement. If your partner doesn’t disclose their exuberant credit card debt before adding your name to that account, it can create significant problems for you. This is a great way to protect yourself from incurring debt your partner may not have told you about.
You’ll provide an overview of your finances to your partner, which includes the following information:
- All sources of income
- Retirement accounts
- Properties, including mortgages and market value
- Assets, like vehicles and collections
- Credit reports
You can provide pay stubs, loan statements, tax returns, copies of insurance policies, and appraisal of valuables as evidence of your finances.
What Happens if I Don’t Disclose Everything?
If you fail to disclose the extent of your finances and debt, it can cause significant issues down the line. In some circumstances, your spouse may challenge the validity of the prenuptial agreement if they find that you have not disclosed the full extent of your finances. This can cost you more in the end, as the assets you omitted can end up being awarded to your spouse upon separation.
How Can an Attorney Help?
Speaking to an attorney is a great way to protect your finances. This helps ensure you understand the financial schedule your spouse provides while ensuring you don’t accidentally omit any assets from your own report.
Unfortunately, financial issues are a significant factor in many divorces. Full financial disclosure and transparency can help avoid potential problems later on. Enlisting the help of an attorney can strengthen your relationship while guaranteeing your finances are protected should you divorce your spouse.
If you’re ready to create a prenuptial agreement, you’ll need the help of an experienced attorney. Peter V. Mandi & Associates has the knowledge you need to help you and your spouse create a prenuptial agreement that works for you. Reach out today to connect with one of our attorneys to discuss your circumstances.