As it turns out, even the latest celebrity gossip can offer up a little financial wisdom.
Driving the news: Musician Joe Jonas and actor Sophie Turner are the latest celebrity couple to file for divorce this year, adding to a star-studded list including Ariana Grande, Britney Spears, and Kevin Costner. They reportedly have an "ironclad” prenuptial agreement, or prenup, that will allow Jonas to keep his music royalties while Turner will keep her acting earnings.
- The pact will also let both "keep the rights to their image and likeness and businesses associated with their celebrity status." Any property purchased before the marriage will also stay in the initial owner's name, but the couple will have to split their marital home.
Why it matters: A prenup is a contract established before a marriage that outlines how property, financial assets, and debts would be divided should a couple divorce. They’re not just for famous people. They’re a good risk management tool for anyone in case things go south.
Yes, but: Couples can take many other proactive measures to avoid financial disagreements.
- Couples need to actually talk to each other about money, despite how uncomfortable it may feel. This includes sharing each other's financial values, goals, and spending habits.
- It's also crucial to make a budget that includes all sources of income and expenses, spending and savings expectations, as well as outlines how expenses will get divided.
- Enlisting a financial planner can also be helpful for couples, especially when it comes to more complex matters such as settling up joint investments or tax and estate planning.
Bottom line: Although discussing finances with your partner probably isn't the most romantic thing, it's a necessary step towards making those other #RelationshipGoals happen.—GP