The first time I heard “prenup,” I was blown away. The song “Gold Digger,” which I heard on the radio at the age of 12, was playing. My mom explained to me that it was an agreement between couples in order to protect their money if they divorce. I thought it was a great idea and assumed that because I was a teenager, I would be wealthy and famous and that my husband and I had a prenup.
Over the years, I have stayed firm in my decision, especially after watching my parents’ messy divorce. It’s also become clear that not everyone agrees with me, even my friends who are married. A recent study by LegalShield revealed that 62% of respondents did not find it necessary to have a prenuptial contract in place. Although I believe that a prenuptial agreement is the best option for me, others’ concerns have made me question whether it’s really worth it.
It may be time to seek expert advice if you have been asking the same question. Before you sign, here’s what you need to understand about the pros, cons, and details of prenuptial agreements.
What is a prenuptial agreement?
According to Jamie Berger, co-founder of the divorce and family law firm Jacobs Berger, a prenuptial agreement creates a plan on how assets will be divided and protects personal assets like inherited wealth, businesses, and properties.
But they can protect much more than income. Kaylin Dillon, a financial planner and prenup coach, has seen couples use these agreements to protect themselves from debt and to establish terms to defend their rights to children, pets, and timeshares.
Berger says that a prenuptial contract allows couples to decide on terms in the event of divorce. This provides a level of certainty, which is not possible without one.
What are the advantages of a prenuptial agreement?
Communication can be improved by using this tool.
While it’s difficult to believe that discussing a prenup can improve your relationship, doing so before you get married will set you up for a successful marriage. Berger says that while these conversations can be difficult, they are valuable in the sense that they allow couples to communicate about the tough stuff from an early stage. The easy part is to walk down the aisle. Marriage is what requires the most work, communication, and trust. Establishing this trust and openness early on can help start the union off right. Certified financial planner and divorce analyst Peter Locke also agree that having an open and honest conversation about money and expectations before marriage can create a healthier and stronger relationship.
This may prevent a difficult divorce.
If you don’t plan, you will fail. Prenups can also be a factor in divorce. A prenuptial contract can be a great way to avoid the uncertainty of who is entitled to what and how assets are divided. A prenup, according to family lawyer Jason Alman, can prevent a long and expensive divorce. He says that a prenup will reduce conflict and disputes rather than prepare for litigation during a difficult time. It will clearly outline the terms for property division and spousal maintenance, which can promote a more peaceful separation. Why leave the decision to a judge if you can come up with a solution in advance?
What are the advantages of a prenuptial agreement?
This can lead to distrust between the two parties.
A prenuptial contract can have both a positive and negative emotional impact on a relationship. When people hear about the possibility of divorce, they can feel doubt and begin to question their relationship. Many people view prenups as planning for divorce rather than planning to have a happy marriage. This can lead to negative feelings towards the relationship when the couple is working out details for their wedding.
The price isn’t cheap.
Prenups are no different from weddings or divorces in that they require both time and money. Alman says that depending on how complex the agreement is, it can cost anything from $1,000 to $50,000. Online prenuptial contracts are available for free, but Alman advises couples to “invest in a professionally reviewed and drafted prenuptial contract to ensure validity and to avoid future costly legal battles.”
The verdict
There’s no wrong or right answer to a prenup. You will only know what is right for your relationship and yourself, just as you would when choosing a partner or saying “I do!” to a proposition. You should educate yourself about the pros and cons of each option (in true Rory Gilmore style), assess your personal and couple financial goals, and keep open communication with your partner. This is not the last major decision you will make as a couple.
