(CNN) — As so many couples prepare to say “I do,” a prenup may be the farthest thing from their minds, but it’s a conversation many couples should have.
As a happy couple prepares for their big day, the last thing they want to think about is what will happen to their assets if things don’t work out.
However, financial experts say it’s important for couples to have the “prenup” talk.
“A prenup is not an agreement that says “I’m betting against our marriage,” What it really is saying is it’s an insurance policy,” says Alexa von Tobel, founder and CEO of LearnVest.com.
It’s a contract that spells out how assets will be distributed in the event of a divorce or death and it’s not just for celebrities and millionaires.
According to bankrate.com, there are several reasons to consider a prenup:
- If you have stocks or retirement funds, own a home or business, or may be receiving an inheritance.
- If you have children from a previous marriage, or elderly parents to take care of.
- Finally, consider a prenup if one future spouse is wealthier than the other, or will be supporting the other through college.
“We recommend you sit down on a Saturday when you have lots of time and really walk through what’s important to you for your finances,” von Tobel adds.
Couples should have the talk as early as possible. Be honest about why you want it, and fully disclose your assets.
Be sure the prenup is in writing, and the signing is witnessed by a lawyer.
And things change, so review it every few years.