As you approach or enter retirement, you typically have assets that you want to protect. You may have a retirement account, home, artwork and other valuables.
If you decide to get married later in life, you may feel as if you need to protect these assets in case of a divorce. Many people in your situation enter into prenuptial agreements.
Property division in divorce
First, you need to understand property division in a divorce. Any assets you have prior to your marriage typically remain yours after your marriage ends. However, any contributions to or interest earned on your retirement become marital assets. In addition, any asset you acquire, even if you paid for it in full personally, becomes marital property.
Protect your retirement
As you age, your ability to earn an income wanes, especially as you near retirement. Therefore, your first priority should include protecting your retirement assets. The last thing you want is to have to drain your accounts and split them with your spouse. You can include protections for your retirement accounts in your prenuptial agreement.
Separate property assets
You can also protect major assets, such as your home. When you pass away, most states transfer all your property to your spouse. However, you may want your children to inherit your assets, especially if they were from a previous marriage. Therefore, you can separate your property assets in a prenuptial agreement or move them to a trust.
Your agreement can also include clauses that dictate your divorce process if you ever face one. It may state your preference for mediation instead of litigation, for example.
Death and divorce cause unexpected challenges, but you can protect your assets and children with a prenuptial agreement.