Why ‘Shark Tank’ Star Kevin O’Leary Says All Couples Need a Prenup
Written by
Ashleigh Ray, AI Editor
Edited by
Susan Kim
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If you’re on the brink of taking your relationship to the next level, there’s some advice from Kevin O’Leary, the no-nonsense investor from “Shark Tank,” that could potentially save you from future financial distress.
Marriage, according to O’Leary, isn’t merely a union of hearts but a significant financial union that requires careful consideration. So, why does he insist every couple consider a prenuptial agreement before saying “I do”? Let’s take a look into the reasons behind his advice.
The Truth-Revealing Power of Prenups
O’Leary champions prenups as a crucial step in the marriage process because they force couples to lay their financial cards on the table. Waiting until after the marriage to discover that your spouse is buried in debt or has a hidden gambling problem can be disastrous.
A prenup isn’t just a piece of paper but a catalyst for important financial discussions. If the idea of a prenup causes tension with your partner, it might be a red flag signaling deeper issues. Addressing financial truths early can prevent major heartaches and headaches down the line.
The “90-Day Number” Exercise
Beyond advocating for prenups, O’Leary suggests couples undertake the “90-day number” exercise. This involves both partners disclosing every expense and source of income over the past three months.
The goal is to achieve financial transparency and to understand whether you’re living within your means as a couple. If your expenses exceed your income, it’s a critical issue that needs resolving before you enter into marriage.
According to O’Leary, financial difficulties are a leading cause of divorce, surpassing even infidelity. This exercise is about ensuring your marriage starts on solid financial footing.
Planning for the Future
O’Leary views marriage as a financial partnership where both parties should aim to build wealth, not debt.
With the cost of raising a child estimated at $240,000 until university age, coupled with potential desires for a new home and managing existing student loans, financial planning becomes indispensable.
Finding Romance in Realism
At this point, you might wonder about the role romance plays in O’Leary’s pragmatic view of marriage. While his advice seems to strip away the romanticism to focus on practicality, O’Leary argues that the most romantic gesture you can make is to ensure your partnership is equipped to handle life’s financial challenges.
According to O’Leary, establishing a strong financial foundation is in itself an act of love and romance. Making sure that your marriage is not just emotionally fulfilling but also financially sound is crucial for long-term happiness and stability.
The Takeaway
Kevin O’Leary’s advice to consider a prenup and engage in open financial discussions before marriage might not be traditionally romantic, but it’s practical.
You should go into marriage with eyes wide open, aware of each other’s financial situations and with a plan to build a future together. It’s a call to prioritize financial health alongside emotional connection, ensuring that your marriage is strong both in love and in finances.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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