Unpleasant conversations are always difficult, but more so when the topic is unfamiliar. This is a particular problem with prenuptial agreements, also known as marriage contracts.
In the absence of early financial education, people may find it difficult to broach the topic of prenups with their partners. This can be especially true if there is a significant difference in wealth.
Educating children early about financial management, wealth planning and wealth preservation, including the importance of prenups, increases the chances of them being proactive—rather than resentful or nervous—about discussing a prenup.
A prenup is recommended if one person has more assets than the other; if one partner wants their assets to go to children from a prior relationship; if one person wants to protect the excluded nature of inheritances or transfer of wealth; or if one person will invest more significantly than the other in the family residence.
Read the full article on Advisor.ca.