A pronup is a written financial plan to help you and your partner to secure your financial future. Written in consultation with a Financial Adviser, a pronup can help you avoid money troubles that would inevitably impact negatively on your relationship.
A pronup shouldn’t be confused with a prenup, which is a binding financial agreement that outlines what you and your partner will be entitled to receive if your relationship ends. Put simply, a pronup has a more positive outlook for your relationship than a prenup!
Think of a pronup as like getting financial counselling for your relationship. It’s like any other form of relationship counselling, just with a financial context. A pronup will help you to identify what you’re currently doing well financially, what you’re not, and what strategies you can put in place to achieve your financial goals together.
Once you have a pronup in place, you should regularly monitor it with your financial adviser as your circumstances change over time.
When should you get a pronup?
It’s important to understand that it’s never too late or too early to get a pronup when you’re in a serious relationship. However, the earlier you put one in place, the better. A pronup will help to:
clarify you and your partner’s short, medium and long-term financial goals,
identify you and your partner’s current spending and savings patterns and,
address any potential financial issues that you may have (or allow you to avoid them altogether).
The bottom line
There’s an old saying that ‘people don’t plan to fail; they fail to plan.’ It’s true whether you’re talking about relationships, finances, or any other aspect of life.
Nobody goes into a serious relationship wanting it to fail, but it’s an unfortunate reality that many relationships do. It’s also a fact that money troubles are a leading cause of relationship break-ups, so it just make sense to have a pronup (financial plan) in place.
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Source: Clientcomm library
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