If you’re about to get married, it’s understandable if you worry that a prenuptial agreement could damage your relationship. In a sense, you’re negotiating the terms of a divorce settlement. However, it appears that the opposite may be the case. Although the divorce rate in California is over 50%, just 5% of my premarital agreement customers returned and filed for divorce or legal separation in my sixteen years of practice.
What Exactly Is a Prenuptial Agreement?
To protect the engaged couple’s premarital and marital assets and debts in the case of divorce or the death of one or both parties, a prenuptial agreement, also known as a prenup is done.
A prenuptial agreement encourages couples to examine their financial goals, their spending and saving habits, and any debts they may have accrued prior to their marriage. Money is one of the leading causes of divorce, but these pre-wedding discussions can help create a happier and more enduring marriage.
If the marriage doesn’t work out, experts say a prenuptial agreement is a good investment since it can prevent a costly and acrimonious divorce. We’ve put together this information to assist you in understanding the intricacies of a prenuptial agreement.
Exactly how much does a prenuptial agreement cost, exactly?
Depending on the complexity of the estate, it could cost anywhere from $1,500 to $10,000. For a set cost, a simple agreement can be created. However, attorneys often charge by the hour for more complex cases.
Postnuptial agreements may be more expensive because the parties are now married and marital property must be taken into consideration. Even if the divorce procedure appears time-consuming, expensive, and needless, a well-drafted agreement can be worth its weight in gold.
Prior to vs. after
Similar to prenuptial agreements, postnuptial agreements are negotiated after the wedding has taken place. Similarly to prenuptial agreements, postnuptial agreements can be enforced. A prenuptial agreement can be obtained for a variety of reasons, including a lack of time before the wedding, an inheritance, or a big liquidity event like the sale of a company, which necessitates an agreement on how the money is to be distributed in the event of divorce or death.
Is a Prenup Necessary?
The following are valid reasons for getting a prenuptial agreement:
Anyone who has been married before.
You’re either a parent or you’re both parents.
One party has a larger financial advantage.
There is a greater amount of debt owed by one of the parties.
A business may be owned by one or both of the parties.
There may be one or both partners who desire to keep their personal lives private.
One or both of the parties have a legacy to safeguard.
I hope you enjoyed reading this blog about the Things To Consider in a Prenuptial Agreement. You might be interested in reading Ready for engagement? 5 things you should know first.