If you’re considering a prenup before getting married, read this first! Here are eight prenup truths that you should know before making any decisions.
Are you getting married soon? Congratulations! Getting married is an exciting moment filled with anxiety and anticipation. Being married used to mean entering a legally enforced financial partnership. This was especially the case when couples got married with no prenuptial agreement in place. However, things have changed. Now that marriage is more of an institution than a legal necessity, there has been an increase in couples who live together without getting officially hitched. If you’re one such couple, who’s not sure yet if you’re ready to take the plunge, consider these eight prenup truths before deciding.
1. Prenups Aren’t Expensive
When people think of prenuptial agreements, they think of wealthy celebrities. However, prenuptial agreements are not just for the rich and famous, and it is not as expensive as you might think. However, the cost of a prenuptial agreement varies by state a lot. For example, Atlanta prenuptial agreement attorneys may cost you from $550 to $3000 depending on the complexity of your legal document, whereas the average attorney’s fee in California ranges from $2,000 to $6,000! This is because of different states’ different rules, regulations, and complexities. But one thing is sure: this is a small price to pay for the peace of mind that comes with knowing that your assets are protected in the event of a divorce.
2. Prenups Can be Modified
You can modify your prenup at any time. Your prenup isn’t something that can’t be changed, but it should serve as a guide for what you want to happen if the marriage does end. If there are any changes in circumstances or one partner wants something different than what was initially agreed upon, then modification is possible. It’s also important to note that once the divorce is finalized, it cannot be changed or modified due to the terms of divorce law—only new agreements can be made.
3. Prenups Don’t Have to Make You Feel Bad
Prenups don’t have to make you feel bad; they can be positive. With such a high divorce rate in America, you never know what might happen after five years of your marriage. Prenups can help you protect yourself and your family by ensuring that your wishes are followed after your divorce. They also enable couples to avoid expensive and complicated divorce proceedings by reducing conflict.
4. Prenups Are for Everyone
If you don’t have a lot of money, it doesn’t mean that you won’t benefit from having a prenup in place before getting married. If you are poor and/or struggle financially, a prenup could be even more crucial. Here’s how:
- Protecting your assets. Prenups are particularly useful for protecting the assets that each spouse brings into the marriage. If one person has more wealth than the other, or if she is planning to start a family business after getting married, then protecting those assets can be extremely important for both spouses.
- Protecting your children. Suppose one spouse dies prematurely without leaving behind any life insurance policies or other financial resources that could help feed and clothe their kids until they’re old enough to get jobs (or go back to school). In that case, both parents must put together an estate plan before they get married so that there aren’t any surprises after they pass away.
5. A Will or Trust is Not The Same as a Prenup
It’s important to remember that a will and trust are different documents from a prenuptial agreement. A will and trust can’t replace your prenup because they don’t have the same legal effect. A will or trust can be changed through a court order, but that process is complicated, costly, and not guaranteed to work out. To make matters worse: if you remarry after entering into one of these agreements, it may be impossible to change or revoke the terms of your previous agreement! It’s best not to rely on either document alone when it comes down to protecting yourself, and your assets should something go wrong between now and when you die—which is why most people use both documents together somehow.
6. Your Parents Can’t Be in Your Prenup
Do you involve your parents in your marriage counseling session? No, right? Then, why involve them in your prenup? Your parents are not involved in the prenup process. Your parents cannot be a witness to your signature, nor do they have any rights or privileges to the prenup. They also can’t benefit from it in any way—that means no money, property, or rights. If you want to include your parents on your wedding day, that’s great! But don’t involve them when it comes to signing off on your marriage contract.
7. A Prenup Can Make Things Easier for Your Children
If you’re worried about how your children will react to their parents getting divorced, a prenup can help. If you and your spouse are getting married for the second time, the chances are that some assets belong to each of you individually. It’s always best for these assets to stay with the parent who brought them into the marriage rather than being divided equally between both spouses during divorce proceedings.
This is especially important when one spouse has more money or debt than their partner does.
8. You Need to be in Good Faith During the Drafting of a Prenup
Negotiating a prenup is not like dealing with a cable company. You need to negotiate flexibly and in good faith. This means you need to be totally honest with each other. It also means that if one person wants something more than the other person, they will have to develop an alternative solution that works for both people involved.
For example, suppose one person wants $10 million in property division, and their partner doesn’t care about property division at all. In that case, the non-caring party might agree on having whatever assets they currently own divided based on how much cash they each contributed to buying those assets together over time. Or perhaps they could agree on a percentage split or percentage of net worth instead? This is where communication comes into play: being open-minded about compromise helps keep things fair for both parties involved!
A prenuptial agreement can help protect your assets should your marriage fail or even help you set specific terms for your divorce. Whether you’re planning a wedding or not, it’s worth discussing a prenup with your spouse-to-be, even if only to learn more about what they think of the subject. Because it’s essential to approach any new venture with optimism and the most positive attitude possible. We hope that the things about prenups we discussed in this post help you decide to sign on the dotted line.