Before the Wedding Bell Tolls—Talk Finances

Physician's Money Digest, February 2007, Volume 14, Issue 2

Wachovia

Renaissance

Newly engaged couples are often reluctantto talk about financial security, especiallyif they plan to draw up a prenuptial agreement.As a parent you need to stress that it'simportant to discuss future finances, andencourage your child to do the same whenthey find that special someone. Setting agood example for how to discuss financesrationally can help avoid a conversation thatfeels like uncertainty in their choice of partner.A prenuptial agreement, as a article explains, always seemsto be the cause of crying and anger. But thediscussion doesn't have to be so stressful.Instead of a prenuptial agreement, discusswith your children setting up a trust, wherethe money can be a source of income butsecure in case of a split. A trust can even beset up to skip a generation, where grandchildrenreceive the funds free of stringsor complications. Instead of sendinglarge checks to the new happycouple, "invest" in their futurewith the gift of a car, taking careof a mortgage payment, or educationalsupport. Families thatown a business should considersigning a buy-sell agreement incase of a change in family status.When one spouse will haveconsiderable assets or is the sole owner ofproperty, a prenuptial may be the bestcourse of action.