While investigating pictures for my newly redesigned web site, I searched photography sites for images that conveyed security, strategy, and trust….all of which are important traits for a financial advisor to have. There were the usual images of handshakes, business meetings, vaults, and golden eggs in nests. Visit my website to see which images I chose.
One image, which I found under the category of “Trust” was particularly intriguing. It was a photograph of wedding bands, appropriate enough to convey the feeling of trust. After all, we hope the happy newlyweds will live together in trust and happiness forever and ever. But, the photo’s background was unusual – the wedding rings were placed on a prenuptial agreement. At first glance, it seems ironic, an image of trust resting on a document designed to protect someone from being hurt, emotionally and monetarily, by someone they’ve chosen to trust.
But when you think about it, it makes sense. There are two types of pre-nuptial agreements. The first deals with physical assets if the marriage ends in divorce. A monetary pre-nuptial agreement may be an important document in a second marriage where there are dependent children from first marriages, if one spouse has large debts, or if the spouses have significantly different amounts of personal net worth.
The second type of pre-nuptial agreement is a halachic pre-nuptial agreement. Called an “Agreement of Mutual Respect,” this agreement aims to prevent the problem of agunot (when when spouse leaves without granting a proper divorce document to the other spouse). Under the “Agreement of Mutual Respect,” if one side initiates divorce proceedings, the other side must pay a set sum of money on a monthly basis if the get is not given within six months. This added financial pressure aims to bring the couple to a fair settlement in a timely manner and avoid any fiscal extortion for the receipt of a get (deed of divorce). Even if you are convinced your marriage will end happily, it’s still important to sign, since the more community members who have one, the lower the chances of anyone ending up an aguna, or any individual having to pay exorbitant sums of money to gain freedom after a sour marriage.
So with wedding season upon us, have a talk about trust with the young couples that you know. Signing this agreement is commonplace now, so make sure that no one forgets to do it. And, when you’re done with that, let me know what you think about my updated website, www.profile-financial.com.
Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.
Published July 19, 2012.