The financial impact on stay-at-home parents needs to be considered when negotiating a Prenuptial or Postnuptial Agreement in Washington, DC.
When one parent stays home with children, there are financial considerations to discuss so that parent is not unfairly treated in the event the marriage ends. It can be difficult to return to the workforce at the same level salary and job position if you are out of the workforce for a number of years. You might forego your career completely or you might have to return to a different level position with a lower salary than you would have had if you continued working and receiving regular promotions or income increases.
There are several issues to consider as you work toward a fair DC Prenuptial Agreement or Postnuptial Agreement. Remember that without an Agreement, assets accumulated during your marriage are treated as marital whether titled jointly or separately. With a Prenuptial Agreement, you can decide how to treat different types of assets so that both people are protected.
Since you are able to determine how you treat salaries and retirement assets along with spousal support in a DC Prenuptial or Postnuptial Agreement, you can negotiate to protect yourself if you become a stay-at-home parent.
- You might consider treating employment income marital during periods of time when one of you is a stay-at-home parent.
- You may want to say that retirement assets are marital assets during these period of time or that the working parent will contribute to a retirement account for the stay-at-home parent.
- Spousal support (alimony) may be included in the event one of you stays home with the children.
There are other ways to protect a stay-at-home parent even if that parent only stays home for a short period of time. The goal is that if your married ends you do not want to be in a difficult economic situation simply because you cared for your children while your spouse worked outside your home.
How do you reach a fair agreement that protects both parents?
It is helpful to speak with a DC family lawyer who drafts DC Prenuptial Agreements so you are able to understand fully your rights and how to protect yourself so you are able to stay home with your kids while still feeling financially protected. You can also draft a Prenup with the similar protections if you stay at home or leave the workforce to care for an elderly or ill parent.