Nicole Noonan, CEO of New Chapter Capital Inc., joins The 411k to discuss divorce funding. Nicole is a nationally recognized divorce expert and shares her experience helping families solve financial disputes.
In the United States, we hear that more than half of all marriages end in divorce. With second marriages in the U.S., the divorce rate rises to 65% and for third marriages, the divorce rate climbs to 75%.
Many people save for a wedding but they rarely save for a divorce. Instead they can turn to credit cards, friends, family gifts or divorce funding to help them afford a divorce.
If you’re in a serious relationship and thinking about marriage, or you might already be engaged, take some time before you get married to talk money. You might find out that a prenup is right for you!
We will admit that the word “prenup” is very taboo word especially when it comes to love and marriage. As such, we wrongly assumed prenups are just for Kardashians or the Real Housewives. In our episode with Casey Rose Shevin, she explained why some couples opt for a prenuptial agreement.
88% percent of Americans think it’s important to have financial conversations before saying “I do”, yet only 51% actually discuss how to handle finances as a team before getting married. Even more shocking, only 41% of married couples disclosed their annual salaries before getting married and only 36% disclosed their debt! The millennial generation is taking their turn getting hitched and, like so many other things, upending the status quo by opting for premarital financial disclosures. Holla we want PRENUPS!
A prenuptial agreement, or a prenup, is a legally binding contract you sign before you get married. If you get divorced, your prenup outlines how you’ll divide assets and debts. You can sign a prenup that is pretty much all encompassing, leaving little to be negotiated at the time of divorce, or you can limit the prenup to address only a single asset or circumstance. For example, if one partner is coming into the marriage with a significant amount of student loans, a prenup can outline that in the event of a divorce, that debt remains 100% with the partner that took out the debt.
Marriage can be the biggest legal binding contract that people enter into. Prenups are created during a time of love, with a focus on the future. A prenup can actually prevent a contentious split because it forces you to think ahead about one of the top sources of stress in a marriage – money. Financial conflict is the leading cause of divorce, and taking the time to focus on this before marriage can strengthen your financial partnership with your spouse.
For more information, check out our episode with Casey Rose Shevin, a family law attorney and mediator.