Take it from our expert team at Walker Wright & Associates – marriage is an economic partnership as much as one based on personal terms. When the personal matters in a relationship suffer because of the economic angle, a couple may wish they had only had some simple advice sooner. If a marriage is on the way to dissolving, whether through divorce or legal separation, you may want to review these considerations to give yourself an idea of how you wish to go about protecting the future of your finances, and understanding where your financial focus lies.
Debt is unequaled in its ability to drive a wedge between people in all kinds of relationships. In most marriages, one or the other of the partners usually comes to the table with debt, and sometimes both do. The difference in couples between the amount and kind of debt they may have, as well as difference in earning power, (which we will discuss later,) can be disruptive to budgeting and investing, so it is important to work out early on what place debt repayment has in your economic partnership. Your Centennial divorce lawyer reminds you that in many cases, one partner becomes liable for the other partner’s debt, such as in the case of co-signing, so regard these decisions with caution and plenty of discussion.
Discussion between partners is key because each individual handles their money differently, and you may find your partner to have an almost completely different fiscal personality than they do in their day to day personality. How people spend and save is very personal, and how a marriage incorporates both of those personalities can do a lot for its strength.
Earning power most certainly can create a power dynamic within a couple that can leave one feeling unduly financially crippled, or that creates shame on one side of the partnership, and frustration on the other. Remember that in a marriage, not all value is financial, and laying out the other kinds of currency you contribute can be helpful in conversations about dividing assets and spending ability.
We are more frequently seeing couples forgo a formal divorce process to cut costs, who are seeking solutions to reclaiming their independent financial freedom. Just going your separate ways without divorcing or legally separating may be cheaper initially, but it will leave you vulnerable to your partner’s liability. A Centennial divorce lawyer from Walker Wright & Associates can help you today with the process of creating a written separation agreement, in which you might set out terms to protect one partner from another’s debt, settle up finances, or map out your economic futures before separating.
Make your financial foundation one based on thoughtful communication, and your economic partnership will already be a step ahead. Part of that financial foundation may include prenuptial agreements, or may be a foundation you lay for a new independent economic life with a separation agreement. However you map your economic partnership, a Centennial divorce lawyer from Walker Wright & Associates can be with you every step of the way. Contact us today to learn more.