Speaking to your new spouse or partner about money matters before you say, ‘I do,’ may head off financial problems before they happen. Nicole Ewing, Tax and Estate Planner, TD Wealth, speaks with Kim Parlee about five points to consider when a new relationship also brings two different financial plans together.
Print Transcript
This is the beginning of a brand-new
segment on the show called Money Talk Life.
00:00:07.100 --> 00:00:09.600 align:middle line:90%
And we are so excited to bring it to you.
00:00:09.600 --> 00:00:13.170 align:middle line:84%
Every second week on the show, we're going
to be getting personal about your lives--
00:00:13.170 --> 00:00:14.700 align:middle line:90%
what's going on in your money.
00:00:14.700 --> 00:00:18.090 align:middle line:84%
So this week, it's about money
and matrimony, and having
00:00:18.090 --> 00:00:22.530 align:middle line:84%
a money talk with your spouse-to-be before
you walk down the aisle or move in together.
00:00:22.530 --> 00:00:24.640 align:middle line:90%
And that's about as personal as it gets.
00:00:24.640 --> 00:00:28.609 align:middle line:84%
But Nicole Ewing, tax and estate planner
at TD Wealth, says not having that talk
00:00:28.609 --> 00:00:30.525 align:middle line:84%
could cost you your
happiness and your wealth.
00:00:30.525 --> 00:00:34.470 align:middle line:84%
So I asked Nicole, what are the
five things every couple should know
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before they decide to be together forever?
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And she said the first one was to have
a prenup or a cohabitation agreement.
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Without those, then we have default rules.
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And whatever jurisdiction you're in, whatever
province you're in, or country you're in,
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those are the rules that are going to apply.
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So in Ontario, for example, at the time
of marriage, all of your future assets
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become joint.
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Yeah.
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And the accrued value of the time
you're together is shared equally.
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If that's not what you intend to have happen,
then you need to contract out of that,
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and say you want something
different to happen.
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Even if you are comfortable with the
default rules that exist in the jurisdiction
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that you're in, you may want to consider, are
we going to retire in a different province?
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Maybe we're gonna retire in British Columbia,
where the rules are very, very different.
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Or Florida.
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Exactly.
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Yeah.
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And so it's worthwhile going
through the exercise of laying out
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exactly what you want to have happen.
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One thing that-- as part of this first
tip, as well, is there's, you know,
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there's cohabs and prenups,
and there's postnups.
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There are postnups, yeah.
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What's a postnup?
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So, a postnup is essentially a marriage
contract that's entered into after marriage.
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We have to be careful in that if you
already have rights, then we don't want to--
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they're going to be looked at
a little bit more carefully.
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Right.
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You don’t want to take away--
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Exactly.
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Right.
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But if there's a point at
which, in the relationship--
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business owners often have this happen--
where their partners may require them
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to enter into a business agreement,
and say we're not going to enter--
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we're not going to do
business with you unless you
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commit to entering into an
agreement where your spouse is not
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going to become my future partner.
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Now, the other thing you
talk about with the prenup
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is it's not just for when
you break up, but it's also
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about how you do things when you're together.
00:02:15.517 --> 00:02:18.600 align:middle line:84%
So, I want to borrow a lot of money,
and I want to invest in penny stocks,
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you're saying not so much.
00:02:20.160 --> 00:02:20.737 align:middle line:90%
Exactly.
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So you can-- obviously, the agreement
is going to touch on the big things,
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the his, hers, ours.
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But you can talk about how much
debt you're willing to take on,
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or your partner is going to take on.
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I think with things like
if we say that everything
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is going to be equal but I'm not
going to help pay for your child
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to go through university, but if you then
pay for your child to go through university
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and all of my money is saved and
invested, that on breakup we're
00:02:43.170 --> 00:02:47.580 align:middle line:84%
going to split the money that we've saved and
invested-- or that I've saved and invested.
00:02:47.580 --> 00:02:50.970 align:middle line:84%
So I've essentially subsidized
your child to go to school.
00:02:50.970 --> 00:02:53.845 align:middle line:84%
So if that's not my intention, that
can be laid out in the agreement.
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You can lay out how often you're going
to have these discussions, whether you're
00:02:57.178 --> 00:02:59.400 align:middle line:84%
going to review them, who's
responsible for paying
00:02:59.400 --> 00:03:04.860 align:middle line:84%
the bills, who needs to actually get out the
checkbook and pay those bills each month.
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So right down to the nitty gritty.
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Your second one here, which is always
fascinating to me, is full disclosure.
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And I think about this about
almost like going to the doctor
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and not telling a doctor how you're doing.
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But you bring up a good
point, too, there's reasons
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why people may not disclose everything.
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People are embarrassed.
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And it may not even just be that they
are trying to withhold that information,
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but it might be something that they're
just really not comfortable talking about.
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So if they have obligations
to an ex-spouse, for example,
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and there's a separation
agreement in play, they
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may not want to dredge
up those conversations.
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They could be embarrassed if
they've made poor decisions,
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if they invested in the penny
stocks and it didn't work out,
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and they don't want to admit
that they've not done well.
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So, it can be a challenging conversation.
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But definitely if you don't share full
disclosure assets, liabilities, obligations,
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the agreement can be set aside.
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It can be void.
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Pretty good incentive.
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Third one here is to review your documents,
and make sure that your agreements reflect
00:04:04.590 --> 00:04:06.270 align:middle line:90%
consistent intentions.
00:04:06.270 --> 00:04:07.530 align:middle line:90%
What do you mean by that?
00:04:07.530 --> 00:04:12.014 align:middle line:84%
So, there's a number of documents that
govern the obligations and the rights
00:04:12.014 --> 00:04:13.680 align:middle line:90%
that we have to ourselves and to others.
00:04:13.680 --> 00:04:18.570 align:middle line:84%
We have wills, powers of attorney, separation
agreements, marriage contracts, perhaps
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business agreements.
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And all of these could actually
be speaking to the same issues.
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And we want to make sure that
there's consistent intention,
00:04:25.110 --> 00:04:29.160 align:middle line:84%
so that your beneficiary
designations are the same on the plan
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document as they are in your will as
they are reflected in your separation
00:04:32.790 --> 00:04:36.570 align:middle line:90%
agreement or your marriage contract.
00:04:36.570 --> 00:04:38.770 align:middle line:84%
So, people can sometimes
get a little bit confused.
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And I see this over and over again.
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In separation agreements, it will outline
that you need to maintain insurance
00:04:45.240 --> 00:04:47.400 align:middle line:90%
for the benefit of a child.
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And people forget why they
have that insurance in place,
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but the agreement says if you don't maintain
that insurance and keep it in place,
00:04:53.850 --> 00:04:58.957 align:middle line:84%
and if you were to pass, then that child
has first claim against your estate.
00:04:58.957 --> 00:05:01.290 align:middle line:84%
If you haven't planned for
that in your other documents,
00:05:01.290 --> 00:05:03.456 align:middle line:84%
the your spouse could
actually end up receiving less
00:05:03.456 --> 00:05:05.050 align:middle line:90%
than you intended them to receive.
00:05:05.050 --> 00:05:07.092 align:middle line:84%
So, it's important to look
at things all together
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and make sure that your
intentions are consistent.
00:05:09.174 --> 00:05:11.190 align:middle line:84%
Yeah, they're all moving
in the same direction.
00:05:11.190 --> 00:05:15.772 align:middle line:84%
Fourth one here is understand that your
actions and decisions have consequences.
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And what do you mean by that?
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So, we've gone through the good talk.
00:05:21.330 --> 00:05:23.580 align:middle line:90%
We've put the agreement in place.
00:05:23.580 --> 00:05:26.670 align:middle line:84%
And now we go off to the bank and
we say, let's make our assets joint
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for a million different reasons.
00:05:29.190 --> 00:05:31.320 align:middle line:90%
For ease of administration.
00:05:31.320 --> 00:05:35.220 align:middle line:84%
And that could actually put off side
the plans that you had in place.
00:05:35.220 --> 00:05:36.975 align:middle line:90%
So, a client of mine--
00:05:36.975 --> 00:05:39.420 align:middle line:84%
he had actually come to
me to talk about wanting
00:05:39.420 --> 00:05:42.245 align:middle line:84%
to make sure that, if
something were to happen,
00:05:42.245 --> 00:05:44.120 align:middle line:90%
he would be able to provide for his children.
00:05:44.120 --> 00:05:47.284 align:middle line:84%
And he didn't want everything
going to his spouse.
00:05:47.284 --> 00:05:49.200 align:middle line:84%
And he had a prenup
agreement in place, and it
00:05:49.200 --> 00:05:51.640 align:middle line:84%
said that the business assets
are kept separate and apart,
00:05:51.640 --> 00:05:55.530 align:middle line:84%
that they're not to be exposed
in case of a marriage breakdown.
00:05:55.530 --> 00:05:58.110 align:middle line:84%
But he had sold his business,
and he had taken those assets,
00:05:58.110 --> 00:06:02.220 align:middle line:84%
and, for a variety of reasons, he'd put
those assets in joint names with his spouse.
00:06:02.220 --> 00:06:05.070 align:middle line:84%
So he had actually undone what
the agreement had in place.
00:06:05.070 --> 00:06:07.230 align:middle line:84%
That preceded, or it took
precedent over the other.
00:06:07.230 --> 00:06:07.730 align:middle line:90%
Yeah.
00:06:07.730 --> 00:06:11.820 align:middle line:84%
And he had also put assets in trust,
these informal in trust accounts,
00:06:11.820 --> 00:06:13.627 align:middle line:90%
with his kids and his kids' names.
00:06:13.627 --> 00:06:15.960 align:middle line:84%
Well, they were over 18, so
those assets were the kids'.
00:06:15.960 --> 00:06:19.803 align:middle line:84%
So he actually didn't have the assets
that he thought he had in place.
00:06:19.803 --> 00:06:20.303 align:middle line:90%
Wow.
00:06:20.303 --> 00:06:21.315 align:middle line:90%
Mhm.
00:06:21.315 --> 00:06:22.690 align:middle line:90%
Not a great surprise on that one.
00:06:22.690 --> 00:06:23.255 align:middle line:90%
No.
00:06:23.255 --> 00:06:23.754 align:middle line:90%
No.
00:06:23.754 --> 00:06:25.390 align:middle line:90%
Final tip is insurance.
00:06:25.390 --> 00:06:25.890 align:middle line:90%
Yes.
00:06:25.890 --> 00:06:27.210 align:middle line:90%
What about insurance?
00:06:27.210 --> 00:06:31.850 align:middle line:84%
It's just a really great tool to
keep things simple and certain.
00:06:31.850 --> 00:06:35.670 align:middle line:84%
So you can, either with
a spouse or child, if you
00:06:35.670 --> 00:06:37.860 align:middle line:84%
know upfront I want to
provide for my spouse, I
00:06:37.860 --> 00:06:40.818 align:middle line:84%
want to make sure that they're taken
care of throughout their lifetime,
00:06:40.818 --> 00:06:43.200 align:middle line:84%
but I don't want to give
up all of these assets--
00:06:43.200 --> 00:06:45.010 align:middle line:90%
I want my children to take these assets--
00:06:45.010 --> 00:06:48.784 align:middle line:84%
then we put in place insurance
policy, a particular amount, done.
00:06:48.784 --> 00:06:50.700 align:middle line:84%
Vice versa, you can do
that for your children.
00:06:50.700 --> 00:06:54.075 align:middle line:84%
Say, I want my children to be provided
for, to receive a legacy from me,
00:06:54.075 --> 00:06:56.700 align:middle line:84%
but I want my spouse to be able
to live the lifestyle that we'd
00:06:56.700 --> 00:06:59.960 align:middle line:84%
been living before, having access to
all the assets that they had before.
00:06:59.960 --> 00:07:03.840 align:middle line:84%
So we put, again, an insurance
policy specific amount in place.
00:07:03.840 --> 00:07:07.140 align:middle line:84%
And we have certainty, and
it's nice and clean and easy.
00:07:07.140 --> 00:07:08.240 align:middle line:90%
Nicole, thank you.
00:07:08.240 --> 00:07:10.080 align:middle line:90%
Pleasure.
00:07:10.080 --> 00:07:14.290 align:middle line:84%
Now, if you would like to hear more
about this, check out this article.
00:07:14.290 --> 00:07:15.960 align:middle line:90%
It's called Money Before Matrimony.
00:07:15.960 --> 00:07:20.850 align:middle line:84%
And you can find out how to have those money
conversations with your significant other.
00:07:20.850 --> 00:07:24.370 align:middle line:90%
And you can find this article and many more.
00:07:24.370 --> 00:07:25.980 align:middle line:90%
We're gonna show you how to do that.
00:07:25.980 --> 00:07:30.540 align:middle line:90%
Go to moneytalkgo.com/life.
00:07:30.540 --> 00:07:34.830 align:middle line:84%
And there, you're gonna find all sorts of
articles on everything from divorce, kids,
00:07:34.830 --> 00:07:37.710 align:middle line:84%
whether your kids can afford
the family cottage, even how
00:07:37.710 --> 00:07:41.130 align:middle line:84%
to navigate the tricky
world of figuring out who
00:07:41.130 --> 00:07:43.985 align:middle line:90%
gets what when you are planning your estate.
00:07:43.985 --> 00:07:46.110 align:middle line:84%
There's a good one there
called The Family Bargain.
00:07:46.110 --> 00:07:47.400 align:middle line:90%
We've got videos.
00:07:47.400 --> 00:07:53.100 align:middle line:84%
We have articles on everything from
housing, retirement, family, everything
00:07:53.100 --> 00:07:56.490 align:middle line:84%
that is important in your life,
and how money plays into that.
00:07:56.490 --> 00:08:00.480 align:middle line:90%
Once again, it's moneytalkgo.com/life.
00:08:00.480 --> 00:08:03.110 align:middle line:84%
And we can't wait for you
to check it out there.
00:08:03.110 --> 00:08:05.820 align:middle line:84%
And we're gonna have it here
on the show every second week.
00:08:05.820 --> 00:08:08.610 align:middle line:84%
Lots of information that you're
gonna be coming your way.
segment on the show called Money Talk Life.
00:00:07.100 --> 00:00:09.600 align:middle line:90%
And we are so excited to bring it to you.
00:00:09.600 --> 00:00:13.170 align:middle line:84%
Every second week on the show, we're going
to be getting personal about your lives--
00:00:13.170 --> 00:00:14.700 align:middle line:90%
what's going on in your money.
00:00:14.700 --> 00:00:18.090 align:middle line:84%
So this week, it's about money
and matrimony, and having
00:00:18.090 --> 00:00:22.530 align:middle line:84%
a money talk with your spouse-to-be before
you walk down the aisle or move in together.
00:00:22.530 --> 00:00:24.640 align:middle line:90%
And that's about as personal as it gets.
00:00:24.640 --> 00:00:28.609 align:middle line:84%
But Nicole Ewing, tax and estate planner
at TD Wealth, says not having that talk
00:00:28.609 --> 00:00:30.525 align:middle line:84%
could cost you your
happiness and your wealth.
00:00:30.525 --> 00:00:34.470 align:middle line:84%
So I asked Nicole, what are the
five things every couple should know
00:00:34.470 --> 00:00:36.870 align:middle line:90%
before they decide to be together forever?
00:00:36.870 --> 00:00:42.180 align:middle line:84%
And she said the first one was to have
a prenup or a cohabitation agreement.
00:00:42.180 --> 00:00:44.550 align:middle line:90%
Without those, then we have default rules.
00:00:44.550 --> 00:00:48.420 align:middle line:84%
And whatever jurisdiction you're in, whatever
province you're in, or country you're in,
00:00:48.420 --> 00:00:50.620 align:middle line:90%
those are the rules that are going to apply.
00:00:50.620 --> 00:00:56.790 align:middle line:84%
So in Ontario, for example, at the time
of marriage, all of your future assets
00:00:56.790 --> 00:00:58.130 align:middle line:90%
become joint.
00:00:58.130 --> 00:00:58.630 align:middle line:90%
Yeah.
00:00:58.630 --> 00:01:02.340 align:middle line:84%
And the accrued value of the time
you're together is shared equally.
00:01:02.340 --> 00:01:07.080 align:middle line:84%
If that's not what you intend to have happen,
then you need to contract out of that,
00:01:07.080 --> 00:01:09.630 align:middle line:84%
and say you want something
different to happen.
00:01:09.630 --> 00:01:13.200 align:middle line:84%
Even if you are comfortable with the
default rules that exist in the jurisdiction
00:01:13.200 --> 00:01:17.262 align:middle line:84%
that you're in, you may want to consider, are
we going to retire in a different province?
00:01:17.262 --> 00:01:21.900 align:middle line:84%
Maybe we're gonna retire in British Columbia,
where the rules are very, very different.
00:01:21.900 --> 00:01:22.620 align:middle line:90%
Or Florida.
00:01:22.620 --> 00:01:23.160 align:middle line:90%
Exactly.
00:01:23.160 --> 00:01:23.580 align:middle line:90%
Yeah.
00:01:23.580 --> 00:01:26.204 align:middle line:84%
And so it's worthwhile going
through the exercise of laying out
00:01:26.204 --> 00:01:28.090 align:middle line:90%
exactly what you want to have happen.
00:01:28.090 --> 00:01:31.260 align:middle line:84%
One thing that-- as part of this first
tip, as well, is there's, you know,
00:01:31.260 --> 00:01:33.519 align:middle line:84%
there's cohabs and prenups,
and there's postnups.
00:01:33.519 --> 00:01:34.560 align:middle line:90%
There are postnups, yeah.
00:01:34.560 --> 00:01:35.520 align:middle line:90%
What's a postnup?
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So, a postnup is essentially a marriage
contract that's entered into after marriage.
00:01:40.140 --> 00:01:46.514 align:middle line:84%
We have to be careful in that if you
already have rights, then we don't want to--
00:01:46.514 --> 00:01:48.930 align:middle line:84%
they're going to be looked at
a little bit more carefully.
00:01:48.930 --> 00:01:49.429 align:middle line:90%
Right.
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You don’t want to take away--
00:01:50.430 --> 00:01:51.120 align:middle line:90%
Exactly.
00:01:51.120 --> 00:01:51.619 align:middle line:90%
Right.
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But if there's a point at
which, in the relationship--
00:01:54.360 --> 00:01:57.984 align:middle line:84%
business owners often have this happen--
where their partners may require them
00:01:57.984 --> 00:02:00.900 align:middle line:84%
to enter into a business agreement,
and say we're not going to enter--
00:02:00.900 --> 00:02:03.060 align:middle line:84%
we're not going to do
business with you unless you
00:02:03.060 --> 00:02:05.790 align:middle line:84%
commit to entering into an
agreement where your spouse is not
00:02:05.790 --> 00:02:07.490 align:middle line:90%
going to become my future partner.
00:02:07.490 --> 00:02:09.870 align:middle line:84%
Now, the other thing you
talk about with the prenup
00:02:09.870 --> 00:02:13.080 align:middle line:84%
is it's not just for when
you break up, but it's also
00:02:13.080 --> 00:02:15.517 align:middle line:90%
about how you do things when you're together.
00:02:15.517 --> 00:02:18.600 align:middle line:84%
So, I want to borrow a lot of money,
and I want to invest in penny stocks,
00:02:18.600 --> 00:02:20.160 align:middle line:90%
you're saying not so much.
00:02:20.160 --> 00:02:20.737 align:middle line:90%
Exactly.
00:02:20.737 --> 00:02:23.820 align:middle line:84%
So you can-- obviously, the agreement
is going to touch on the big things,
00:02:23.820 --> 00:02:25.560 align:middle line:90%
the his, hers, ours.
00:02:25.560 --> 00:02:28.790 align:middle line:84%
But you can talk about how much
debt you're willing to take on,
00:02:28.790 --> 00:02:30.520 align:middle line:90%
or your partner is going to take on.
00:02:30.520 --> 00:02:33.370 align:middle line:84%
I think with things like
if we say that everything
00:02:33.370 --> 00:02:36.120 align:middle line:84%
is going to be equal but I'm not
going to help pay for your child
00:02:36.120 --> 00:02:40.170 align:middle line:84%
to go through university, but if you then
pay for your child to go through university
00:02:40.170 --> 00:02:43.170 align:middle line:84%
and all of my money is saved and
invested, that on breakup we're
00:02:43.170 --> 00:02:47.580 align:middle line:84%
going to split the money that we've saved and
invested-- or that I've saved and invested.
00:02:47.580 --> 00:02:50.970 align:middle line:84%
So I've essentially subsidized
your child to go to school.
00:02:50.970 --> 00:02:53.845 align:middle line:84%
So if that's not my intention, that
can be laid out in the agreement.
00:02:53.845 --> 00:02:57.178 align:middle line:84%
You can lay out how often you're going
to have these discussions, whether you're
00:02:57.178 --> 00:02:59.400 align:middle line:84%
going to review them, who's
responsible for paying
00:02:59.400 --> 00:03:04.860 align:middle line:84%
the bills, who needs to actually get out the
checkbook and pay those bills each month.
00:03:04.860 --> 00:03:06.360 align:middle line:90%
So right down to the nitty gritty.
00:03:06.360 --> 00:03:10.681 align:middle line:84%
Your second one here, which is always
fascinating to me, is full disclosure.
00:03:10.681 --> 00:03:13.180 align:middle line:84%
And I think about this about
almost like going to the doctor
00:03:13.180 --> 00:03:15.160 align:middle line:90%
and not telling a doctor how you're doing.
00:03:15.160 --> 00:03:17.490 align:middle line:84%
But you bring up a good
point, too, there's reasons
00:03:17.490 --> 00:03:19.320 align:middle line:90%
why people may not disclose everything.
00:03:19.320 --> 00:03:20.820 align:middle line:90%
People are embarrassed.
00:03:20.820 --> 00:03:24.070 align:middle line:84%
And it may not even just be that they
are trying to withhold that information,
00:03:24.070 --> 00:03:27.444 align:middle line:84%
but it might be something that they're
just really not comfortable talking about.
00:03:27.444 --> 00:03:30.100 align:middle line:84%
So if they have obligations
to an ex-spouse, for example,
00:03:30.100 --> 00:03:32.100 align:middle line:84%
and there's a separation
agreement in play, they
00:03:32.100 --> 00:03:35.306 align:middle line:84%
may not want to dredge
up those conversations.
00:03:35.306 --> 00:03:37.680 align:middle line:84%
They could be embarrassed if
they've made poor decisions,
00:03:37.680 --> 00:03:40.680 align:middle line:84%
if they invested in the penny
stocks and it didn't work out,
00:03:40.680 --> 00:03:44.340 align:middle line:84%
and they don't want to admit
that they've not done well.
00:03:44.340 --> 00:03:48.690 align:middle line:90%
So, it can be a challenging conversation.
00:03:48.690 --> 00:03:53.890 align:middle line:84%
But definitely if you don't share full
disclosure assets, liabilities, obligations,
00:03:53.890 --> 00:03:55.620 align:middle line:90%
the agreement can be set aside.
00:03:55.620 --> 00:03:56.790 align:middle line:90%
It can be void.
00:03:56.790 --> 00:03:58.710 align:middle line:90%
Pretty good incentive.
00:03:58.710 --> 00:04:04.590 align:middle line:84%
Third one here is to review your documents,
and make sure that your agreements reflect
00:04:04.590 --> 00:04:06.270 align:middle line:90%
consistent intentions.
00:04:06.270 --> 00:04:07.530 align:middle line:90%
What do you mean by that?
00:04:07.530 --> 00:04:12.014 align:middle line:84%
So, there's a number of documents that
govern the obligations and the rights
00:04:12.014 --> 00:04:13.680 align:middle line:90%
that we have to ourselves and to others.
00:04:13.680 --> 00:04:18.570 align:middle line:84%
We have wills, powers of attorney, separation
agreements, marriage contracts, perhaps
00:04:18.570 --> 00:04:19.860 align:middle line:90%
business agreements.
00:04:19.860 --> 00:04:22.575 align:middle line:84%
And all of these could actually
be speaking to the same issues.
00:04:22.575 --> 00:04:25.110 align:middle line:84%
And we want to make sure that
there's consistent intention,
00:04:25.110 --> 00:04:29.160 align:middle line:84%
so that your beneficiary
designations are the same on the plan
00:04:29.160 --> 00:04:32.790 align:middle line:84%
document as they are in your will as
they are reflected in your separation
00:04:32.790 --> 00:04:36.570 align:middle line:90%
agreement or your marriage contract.
00:04:36.570 --> 00:04:38.770 align:middle line:84%
So, people can sometimes
get a little bit confused.
00:04:38.770 --> 00:04:41.530 align:middle line:90%
And I see this over and over again.
00:04:41.530 --> 00:04:45.240 align:middle line:84%
In separation agreements, it will outline
that you need to maintain insurance
00:04:45.240 --> 00:04:47.400 align:middle line:90%
for the benefit of a child.
00:04:47.400 --> 00:04:50.310 align:middle line:84%
And people forget why they
have that insurance in place,
00:04:50.310 --> 00:04:53.850 align:middle line:84%
but the agreement says if you don't maintain
that insurance and keep it in place,
00:04:53.850 --> 00:04:58.957 align:middle line:84%
and if you were to pass, then that child
has first claim against your estate.
00:04:58.957 --> 00:05:01.290 align:middle line:84%
If you haven't planned for
that in your other documents,
00:05:01.290 --> 00:05:03.456 align:middle line:84%
the your spouse could
actually end up receiving less
00:05:03.456 --> 00:05:05.050 align:middle line:90%
than you intended them to receive.
00:05:05.050 --> 00:05:07.092 align:middle line:84%
So, it's important to look
at things all together
00:05:07.092 --> 00:05:09.174 align:middle line:84%
and make sure that your
intentions are consistent.
00:05:09.174 --> 00:05:11.190 align:middle line:84%
Yeah, they're all moving
in the same direction.
00:05:11.190 --> 00:05:15.772 align:middle line:84%
Fourth one here is understand that your
actions and decisions have consequences.
00:05:15.772 --> 00:05:16.980 align:middle line:90%
And what do you mean by that?
00:05:16.980 --> 00:05:21.330 align:middle line:90%
So, we've gone through the good talk.
00:05:21.330 --> 00:05:23.580 align:middle line:90%
We've put the agreement in place.
00:05:23.580 --> 00:05:26.670 align:middle line:84%
And now we go off to the bank and
we say, let's make our assets joint
00:05:26.670 --> 00:05:29.190 align:middle line:90%
for a million different reasons.
00:05:29.190 --> 00:05:31.320 align:middle line:90%
For ease of administration.
00:05:31.320 --> 00:05:35.220 align:middle line:84%
And that could actually put off side
the plans that you had in place.
00:05:35.220 --> 00:05:36.975 align:middle line:90%
So, a client of mine--
00:05:36.975 --> 00:05:39.420 align:middle line:84%
he had actually come to
me to talk about wanting
00:05:39.420 --> 00:05:42.245 align:middle line:84%
to make sure that, if
something were to happen,
00:05:42.245 --> 00:05:44.120 align:middle line:90%
he would be able to provide for his children.
00:05:44.120 --> 00:05:47.284 align:middle line:84%
And he didn't want everything
going to his spouse.
00:05:47.284 --> 00:05:49.200 align:middle line:84%
And he had a prenup
agreement in place, and it
00:05:49.200 --> 00:05:51.640 align:middle line:84%
said that the business assets
are kept separate and apart,
00:05:51.640 --> 00:05:55.530 align:middle line:84%
that they're not to be exposed
in case of a marriage breakdown.
00:05:55.530 --> 00:05:58.110 align:middle line:84%
But he had sold his business,
and he had taken those assets,
00:05:58.110 --> 00:06:02.220 align:middle line:84%
and, for a variety of reasons, he'd put
those assets in joint names with his spouse.
00:06:02.220 --> 00:06:05.070 align:middle line:84%
So he had actually undone what
the agreement had in place.
00:06:05.070 --> 00:06:07.230 align:middle line:84%
That preceded, or it took
precedent over the other.
00:06:07.230 --> 00:06:07.730 align:middle line:90%
Yeah.
00:06:07.730 --> 00:06:11.820 align:middle line:84%
And he had also put assets in trust,
these informal in trust accounts,
00:06:11.820 --> 00:06:13.627 align:middle line:90%
with his kids and his kids' names.
00:06:13.627 --> 00:06:15.960 align:middle line:84%
Well, they were over 18, so
those assets were the kids'.
00:06:15.960 --> 00:06:19.803 align:middle line:84%
So he actually didn't have the assets
that he thought he had in place.
00:06:19.803 --> 00:06:20.303 align:middle line:90%
Wow.
00:06:20.303 --> 00:06:21.315 align:middle line:90%
Mhm.
00:06:21.315 --> 00:06:22.690 align:middle line:90%
Not a great surprise on that one.
00:06:22.690 --> 00:06:23.255 align:middle line:90%
No.
00:06:23.255 --> 00:06:23.754 align:middle line:90%
No.
00:06:23.754 --> 00:06:25.390 align:middle line:90%
Final tip is insurance.
00:06:25.390 --> 00:06:25.890 align:middle line:90%
Yes.
00:06:25.890 --> 00:06:27.210 align:middle line:90%
What about insurance?
00:06:27.210 --> 00:06:31.850 align:middle line:84%
It's just a really great tool to
keep things simple and certain.
00:06:31.850 --> 00:06:35.670 align:middle line:84%
So you can, either with
a spouse or child, if you
00:06:35.670 --> 00:06:37.860 align:middle line:84%
know upfront I want to
provide for my spouse, I
00:06:37.860 --> 00:06:40.818 align:middle line:84%
want to make sure that they're taken
care of throughout their lifetime,
00:06:40.818 --> 00:06:43.200 align:middle line:84%
but I don't want to give
up all of these assets--
00:06:43.200 --> 00:06:45.010 align:middle line:90%
I want my children to take these assets--
00:06:45.010 --> 00:06:48.784 align:middle line:84%
then we put in place insurance
policy, a particular amount, done.
00:06:48.784 --> 00:06:50.700 align:middle line:84%
Vice versa, you can do
that for your children.
00:06:50.700 --> 00:06:54.075 align:middle line:84%
Say, I want my children to be provided
for, to receive a legacy from me,
00:06:54.075 --> 00:06:56.700 align:middle line:84%
but I want my spouse to be able
to live the lifestyle that we'd
00:06:56.700 --> 00:06:59.960 align:middle line:84%
been living before, having access to
all the assets that they had before.
00:06:59.960 --> 00:07:03.840 align:middle line:84%
So we put, again, an insurance
policy specific amount in place.
00:07:03.840 --> 00:07:07.140 align:middle line:84%
And we have certainty, and
it's nice and clean and easy.
00:07:07.140 --> 00:07:08.240 align:middle line:90%
Nicole, thank you.
00:07:08.240 --> 00:07:10.080 align:middle line:90%
Pleasure.
00:07:10.080 --> 00:07:14.290 align:middle line:84%
Now, if you would like to hear more
about this, check out this article.
00:07:14.290 --> 00:07:15.960 align:middle line:90%
It's called Money Before Matrimony.
00:07:15.960 --> 00:07:20.850 align:middle line:84%
And you can find out how to have those money
conversations with your significant other.
00:07:20.850 --> 00:07:24.370 align:middle line:90%
And you can find this article and many more.
00:07:24.370 --> 00:07:25.980 align:middle line:90%
We're gonna show you how to do that.
00:07:25.980 --> 00:07:30.540 align:middle line:90%
Go to moneytalkgo.com/life.
00:07:30.540 --> 00:07:34.830 align:middle line:84%
And there, you're gonna find all sorts of
articles on everything from divorce, kids,
00:07:34.830 --> 00:07:37.710 align:middle line:84%
whether your kids can afford
the family cottage, even how
00:07:37.710 --> 00:07:41.130 align:middle line:84%
to navigate the tricky
world of figuring out who
00:07:41.130 --> 00:07:43.985 align:middle line:90%
gets what when you are planning your estate.
00:07:43.985 --> 00:07:46.110 align:middle line:84%
There's a good one there
called The Family Bargain.
00:07:46.110 --> 00:07:47.400 align:middle line:90%
We've got videos.
00:07:47.400 --> 00:07:53.100 align:middle line:84%
We have articles on everything from
housing, retirement, family, everything
00:07:53.100 --> 00:07:56.490 align:middle line:84%
that is important in your life,
and how money plays into that.
00:07:56.490 --> 00:08:00.480 align:middle line:90%
Once again, it's moneytalkgo.com/life.
00:08:00.480 --> 00:08:03.110 align:middle line:84%
And we can't wait for you
to check it out there.
00:08:03.110 --> 00:08:05.820 align:middle line:84%
And we're gonna have it here
on the show every second week.
00:08:05.820 --> 00:08:08.610 align:middle line:84%
Lots of information that you're
gonna be coming your way.
