Considering a Prenup? Here are the Facts
- Considering a Prenup? Here are the Facts
- What is the purpose of a prenuptial agreement?
- Who benefits most from a prenup?
- What is the Timeline for a Prenuptial Agreement?
- FAQs on Prenuptial Agreements
- What are the three main reasons to get a prenup?
- What are the disadvantages of a prenuptial agreement?
- Is it a good idea to get a prenup?
- What should a woman ask for in a prenup?
- How much money justifies a prenup?
- What should a man ask for in a prenup?
- Is a prenup only about money?
- Should every couple get a prenup?
- Does a prenup protect your house?
- Does cheating void a prenup?
- What percentage of couples get prenups?
- Is it bad if your partner wants a prenup?
- What is the most common prenup?
- Do prenups protect money made after marriage?
- Does a prenup split money?
- What year of marriage is most common for divorce?
- Are prenups void after 10 years?
- When should a couple get a prenup?
Prenuptial agreements are binding contracts that prospective spouses make before getting married. These contractual agreements may cover a multitude of issues that arise during the marriage or in the event of a divorce or separation. Whether to have a prenuptial agreement is a personal decision that should be carefully thought out and prepared with the involvement of both parties.
There are both benefits and drawbacks to having a prenuptial agreement. Prenuptial agreements can help separate and protect your property, create rules for future decisions, and help avoid conflict and expensive, time-consuming divorce procedures. While negotiating a prenuptial agreement can be difficult and unromantic, in many cases it actually strengthens a relationship and urges good communication in your marriage.
Every state has its own laws and statutes that govern property rights after a divorce. Many states divide marital and community property equitably in the event of a divorce or death of one spouse. Others will divide property based on a number of case-specific circumstances. Prenuptial agreements allow you and your spouse to make your own decisions when it comes to dividing your property and assets.
See Also: Top Texas Prenup Lawyers (by City)
Prenuptial agreements do not only cover issues that occur if you separate or get a divorce. In many cases, prenuptial agreements are drafted in order to establish the responsibilities of each spouse during marriage. There are a number of uses for a prenup, depending on your specific situation. Some common prenup topics may include, but are not limited to:
- Who will pay the household bills
- Agreements about certain purchases like buying a home or starting a business
- Agreements to set aside a specific amount of money for savings
- Agreements about separate or joint bank accounts
- Estate planning
- Allotting income and deductions on tax returns
While prenuptial agreements are a way for couples to form legally binding agreements, some things may not be established in a prenup contract. For example, arrangements regarding child custody, visitation rights, and child support agreements will not be upheld in any state.
Furthermore, many non-financial issues cannot be included in a prenuptial agreement. Personal matters such as decisions about birth control, having and raising children, use of last names after the marriage, and responsibility of pets should be handled separately.
If you and your partner are considering having a prenuptial agreement, it is necessary to seek the help of a qualified family law attorney. An attorney will inform you of the laws of your state, draft your prenup, and help protect your legal rights and interests. Please contact us today to speak with an experienced attorney free of charge or to learn more information about your legal rights and options.
What is the purpose of a prenuptial agreement?
Prenuptial agreements, sometimes referred to as premarital agreements pr prenups, are legally binding contracts that couples enter into before they get married. These agreements are designed to protect both parties – the bride and groom – in the event of a divorce or death, by detailing how their assets will be divided. Prenuptial agreements can include provisions regarding the division of property, spousal support, alimony, and other financial matters.
Beyond providing legal protection in the case of a divorce or death, prenuptial agreements can also serve to reduce tension between couples during marriage. By establishing rules and expectations from the beginning, couples can avoid arguments over finances down the line. Additionally, it can provide clarity around which assets are considered marital property versus individual property.
Ultimately, prenuptial agreements help provide peace of mind for couples who want to secure their financial future, both individually and together. They allow couples to discuss difficult topics such as money, debts, and inheritance without feeling uncomfortable or overwhelmed. Though they may not be ideal conversation starters, prenuptial agreements can bring valuable clarity and security to marriages.
Who benefits most from a prenup?
When it comes to marriage, a prenuptial agreement can be an invaluable asset for both partners. It provides security and protection against potential future losses in the event of a divorce and can help simplify the process by providing clear definitions of each partner’s financial rights and obligations.
That said, it is important to note that each partner stands to benefit from a prenup in different ways. Those with assets or income they wish to protect may find that such agreements offer them more security than merely relying on the law in their respective state. On the other hand, individuals who are at risk of being taken advantage of financially might benefit from a prenuptial agreement if it sets forth provisions that address issues like separate versus joint property ownership or support alimony in the case of a divorce.
Overall, the biggest benefit of a prenuptial agreement comes down to peace of mind. By putting together a comprehensive and legally sound document, couples can provide clarity and security regarding their financial situation now and in the event of separation in the future. This can lead to greater trust between spouses and can ultimately make their lives easier should they ever face the prospect of divorce.
What is the Timeline for a Prenuptial Agreement?
Not everyone needs (or wants) a prenuptial agreement. How do you know if a prenup is right for you, a member of your family, or a client? Some “clues” that a prenup might be in order, if the newly engaged or his/her intended:
- have children from a previous relationship
- are a small business owner (or are planning to start one soon)
- have a real estate or investment portfolio
When I begin working with a client seeking a prenuptial agreement, I help facilitate conversations with their fiancé(e) around how they will handle money in their marriage: will they use their pooled money to pay the mortgage on the ski house in Tahoe? Will they merge their checking and savings accounts? What about if, somewhere down the line, the relationship dissolves? Do they each want to keep their own retirement, or use California family law to determine how to divide it? I help my client come up with questions and ways of approaching those questions that open up a dialogue with their intended about money.
The next stage is to get a financial “snapshot.” This takes at least twice as long as people expect! It takes about a month for clients to pull together information on all their assets and debts, along with current bank, credit card, car loan, retirement savings statements, etc. The more complicated a client’s financial situation, the longer this stage can take.
With all the information in hand, I draw up a prenuptial agreement that reflects (a) my client’s financial situation, and (b) the discussion that the client and fiancé(e) have had. Once I have a draft with which my client is happy, I send it to their intended and his/her attorney. It is critical that each person have their own independent attorney, or, under California family law, the prenup will not be enforceable. (And why go through all of this to have an unenforceable agreement?!)
Finally, and most confusingly, Texas family law requires a one-week “ cooling off” period between when a prenup is finalized and when it can be signed. This means all changes must be made and finalized at least ten days before the big day. (And, personally, I hate cutting it that close!)
FAQs on Prenuptial Agreements
What are the three main reasons to get a prenup?
Prenuptial agreements can serve three common purposes: providing financial protection in case of divorce, protecting assets acquired before marriage, and clearly establishing expectations for each spouse during the marriage. By agreeing to a prenuptial agreement, couples can set boundaries that define what is and isn’t allowed within their marriage, which can help avoid potential conflicts down the road.
What are the disadvantages of a prenuptial agreement?
While a prenuptial agreement can be beneficial in case of a potential dissolution of the marriage, they do have certain drawbacks. For example, some people feel that prenuptial agreements make it easier to part ways without considering the emotional costs. Furthermore, these agreements may not cover all types of assets and can be difficult to legally enforce in some situations.
Is it a good idea to get a prenup?
Whether or not to get a prenup is a personal decision for each couple and should be discussed thoroughly with legal counsel. Generally speaking, it may be wise to consider a prenuptial agreement if you or your partner have significant assets or debts that should not be inherited by the other party in the event of a divorce. Additionally, if either party has children from a prior relationship, a prenuptial agreement may provide them with additional security.
What should a woman ask for in a prenup?
The specifics of a prenuptial agreement vary from couple to couple and depend on their specific needs. As such, there is no one-size-fits-all answer to this question. However, women should consider incorporating provisions for alimony/spousal support, division of joint property acquired during the marriage, and compensation if either spouse is required to take time off from work to care for children.
How much money justifies a prenup?
Ultimately, the amount of money required to justify a prenup will depend on the individual circumstances of each couple. If either party has assets worth more than $50,000, or either partner is responsible for debts totaling over $25,000, a prenuptial agreement might be worthwhile.
What should a man ask for in a prenup?
Men should consider consulting an attorney to determine their individual needs. Generally speaking, men should consider including provisions related to maintenance payments (in the event of divorce) and division of jointly-owned property. Additionally, if either spouse expects to contribute significantly more towards retirement savings or other investments than the other, those issues should also be addressed in the prenuptial agreement.
Is a prenup only about money?
No – while financial issues are often addressed in prenuptial agreements, many couples use these documents to establish expectations regarding other aspects of their marriage as well. These could include requirements around spending habits, roles and responsibilities during the marriage, and rules regarding child custody and visitation in case of a divorce.
Should every couple get a prenup?
Whether or not a couple should get a prenuptial agreement is ultimately up to them. That said, couples who have significant debt or assets should strongly consider getting one so that both parties have financial protection in case of divorce. Regardless of your individual situation, we recommend that all couples thoroughly discuss their financial situation with an attorney before tying the knot.
Does a prenup protect your house?
Yes, prenuptial agreements can be used to specify which partner owns a particular property, such as a house. This can be especially helpful if one spouse acquires a house prior to getting married and wishes to keep it separate after the wedding.
Does cheating void a prenup?
No, cheating typically does not void a prenuptial agreement. Prenuptial agreements are typically contracts that are upheld in court regardless of infidelity. However, in some cases, hostile behavior, such as abuse, might negate the contract’s terms.
What percentage of couples get prenups?
According to the American Academy of Matrimonial Lawyers, approximately 40% of all marriages now include at least one legally-binding prenuptial agreement.
Is it bad if your partner wants a prenup?
No, it isn’t necessarily bad if your partner asks for a prenup. It’s important to remember that getting a prenuptial agreement does not mean one partner trusts the other less or has doubts about the relationship; rather, it can simply provide added security should things not work out as expected. Ultimately, couples should discuss their individual reasons for wanting a prenuptial agreement and come to an agreement on how best to move forward.
What is the most common prenup?
The most common type of prenuptial agreement is a “full disclosure” agreement. This type of prenup requires both parties to disclose all their assets, debts, and income prior to marriage. Upon signing the agreement, each partner will specify their wishes for how they wish their property to be divided in the event of a divorce or death.
Do prenups protect money made after marriage?
Yes, prenups can provide financial protections for money made after marriage as well. Partners can specify how they want property and money acquired during their marriage to be divided in the event that the marriage ends. This ensures that each partner has clarity and peace of mind when it comes to managing their finances.
Does a prenup split money?
A prenup can provide guidance on how money should be divided in the event of a divorce, but it does not legally require partners to divide their property in any particular way. Ultimately, spouses can come to an agreement about how to divide their assets outside of a prenup.
What year of marriage is most common for divorce?
Studies have found that the majority of divorces occur within the first 7 years of marriage. Research has also shown that couples are least likely to get divorced later on in their marriage, with those married 20 years or more being the least likely group to file for divorce.
Are prenups void after 10 years?
Prenuptial agreements generally remain valid until either partner dies or until one partner files for divorce. Generally speaking, prenups do not become void simply due to the amount of time that has passed since the agreement was signed.
When should a couple get a prenup?
Many couples choose to sign a prenuptial agreement before they get married. Doing so can provide clarity and peace of mind by ensuring that both partners are clear about their respective rights and responsibilities in the event that their marriage ends. It’s best to discuss a prenup with your partner and consult with a lawyer who specializes in family law before making any final decisions.