My Financial Coach Live: Interview with Kaylin Dillon

Check out my interview with Enpo Tu on the My Financial Coach Live podcast.

Prenups aren’t so scary. But where do you start exactly? Hear my thoughts on that and more in this interview.

 

Prenups Do More Than You Think

2 sets of hands clasped together on either side of a table. In between: a document, pen, and wedding rings.

Marriage is, for many people, the foundation of a happy life. But modern living puts pressure on us in so many ways, and money is often at the core. Finding a way to build trust and openness can be difficult. We all have complicated relationships with money, which begin in our childhoods and reflect our parents’ attitudes and beliefs. There are often hidden sensitivities and danger spots that neither partner is aware of – until something crops up that creates a problem.

In addition, it can be hard to navigate through all the things that Gen X and Gen Y will potentially face:

  • Multiple careers, multiple 401(k)s
  • Complex equity compensation
  • Blended families
  • Family wealth
  • Moving to a new city or state
  • Leaving the workforce
  • Starting a business

Having a road map that begins with honest, structured conversations and allows each partner to weigh in on decision-making and feel heard can be the best way to build a long-term, respectful relationship.

You might be surprised to know that what I’ve just described is a prenuptial agreement, also called a prenup or pre-marital agreement. The present-day prenup was originally conceived to protect each partner throughout the marriage and simplify the proceedings in the event of a divorce.

There are still a lot of situations where a prenup is necessary. But even for couples without those prenup-necessitating factors, the process of being thoughtful about money and making your plans and wishes explicit in the form of an agreement can be a part of starting a healthy marriage out right. Among many other positive functions, a prenup can be a springboard to allowing each partner to build a professional life that satisfies them while also keeping the family and marital life on track.

The Basics – Situations (and People) Prenups Are Designed to Protect

Blended families: Protecting children from previous relationships is often the first consideration of a prenuptial agreement. It may set aside funds for their future education or other needs, or protect existing financial obligations to children or an ex-spouse.

Protecting Existing and Created Wealth: The traditional view is that the prenup can protect the wealthier spouse – but that only works for existing wealth. Equity is increasingly part of the compensation package, and the potential for this type of compensation to suddenly be worth vast amounts of wealth – years after it was originally granted – has grown. Prenuptial agreements that protect both partners and spell out exactly what is included and what is not are becoming the norm.

One Partner Has More Debt: Debt is one of the most challenging aspects of joining finances. Existing debt can become the other partner’s responsibility, and debt incurred during the marriage may also be fair game for creditors. Prenuptial agreements can help clear the air, spark healthy conversations, and set clear boundaries that will help everyone feel protected.

Business Ownership: If you own your business, whether outright or with a partner, including it in a prenup can preserve the value, protect partners, and keep the business from becoming marital property as it grows in value during the marriage.

When the Choice is for One Partner to Forgo Work: If a couple decides that one partner will be putting a career on hold to undertake family-oriented duties, a prenup can help protect them. This can include annual contributions to an IRA, a life insurance policy, and other financial arrangements that allow the non-working spouse to create wealth on their own terms.

Clarify Non-Marital Assets: Inheritances are non-marital assets. However, they can be unintentionally commingled and converted to marital property. Additionally, some states only protect original inheritance values as separate property, and consider any appreciation in value during the marriage to be marital property. A prenup can explicitly define non-marital property so there is no question about how to treat it.

The Bottom Line

Careers, families, our dreams and goals, and our desire to create a true partnership with someone else can all be accomplished – with the help of some honest conversation and then creating a prenuptial agreement that speaks to everyone’s best interest. It’s not a contingency plan for divorce – it’s a road map to a long and happy life.

 


The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.

This content not reviewed by FINRA

A Scoop of Vanilla Podcast Interview: Lindsey Talks Prenups with Kaylin Dillon

Check out my interview with Lindsey Swanson, CFP® on her podcast A Scoop of Vanilla. We talk prenups, relationship power dynamics, and when to start talking to your partner about how you want to handle your finances together.

 

Lindsey has dedicated her practice to providing financial advice for sex workers and gig workers. She’s passionate about making financial services available to communities traditionally ignored by the financial services industry.

HelloPrenup Podcast: Navigating Finances as a Blended Couple with Kaylin Dillon

How do I get on the same page as my partner? How do we navigate conversations around finances, assets, debt, and goals? How do we navigate life events? How do I feel confident as a woman in my marriage? And the biggest question of all… How do I get a prenup and feel really good about it?

Whether you’re single, engaged, married, or divorced, you’re going to get a lot out of this episode. Check out my interview with Host Lauren Lavender of HelloPrenup.

Hear me talk about why I focus on working with couples with prenuptial agreements and blended families. I care about helping couples uphold their legal agreements in a way that supports their relationship. Whether it’s for a divorce or a marriage, couples don’t enter into marital agreements lightly but tracking the terms of an agreement into the future (indefinitely) is no easy task.

As you’ll hear, I believe “Couples deserve to have ongoing support in these matters and no one is better positioned from a cost and visibility standpoint than their financial advisor.”

I really enjoyed my conversation with Lauren. We dive into why upholding legal agreements is so important and how the lack thereof has affected me personally. We also talk about the all-too-common trap of money shame and to seek help if you need it. Lastly, we cover why blended families really should consider prenups and estate planning in order to protect the financial outcomes of their families.


I hope you enjoy listening!