What is a prenuptial agreement?
A prenuptial agreement, known casually as a “prenup” is a contract that two people sign before they get married. The purpose of this contract is to single out the rights and benefits between individuals who are planning to marry and to settle questions of property distribution, alimony, inheritance matters if the marriage ends with a death, separation, or divorce. It allows the individuals to protect their own assets that they had acquired before the marriage.
Should I seriously consider a prenuptial agreement?
Unfortunately, less than 50 percent of all marriages end in divorce. It’s like flipping a coin. That is why a prenuptial agreement is considered to be smart financial planning. Marriage isn’t only a symbolic union of love and appreciation; it’s also a union of financial assets. A prenuptial agreement can help protect the financial well-being of the marriage, as well as protect the assets of both individuals.
How much does it cost?
You can expect to pay anywhere from $700 to $800 for an attorney-prepared prenuptial agreement. This cost is also based upon the difficulty of the couples’ finances and the amount of negotiation involved needed to reach an agreement. Additional costs may apply depending on the assets involved.
How should I discuss a prenuptial agreement with my partner?
If you are considering a prenuptial agreement, discuss it as early as possible with your partner. The topic shouldn’t be taboo if you and your partner have been open with each other about serious issues such as marriage, financial responsibilities or children. Be upfront as to why you believe a prenuptial agreement is important and that you’d like to explore the option further.
No, not necessarily. A prenuptial agreement is usually based on practicality rather than a lack of trust. Older couples that marry a second time simply want to protect their children. Younger couples may feel that a prenuptial agreement will protect them later on if the marriage does not work out. Prenuptial agreements are normally used by those individuals who are wealthy and have many additional assets.