Do I Need A Prenuptial Agreement (Prenup)?

What Does a Prenup Do?

A prenup, or a prenuptial agreement, is an agreement a couple creates before saying their I do’s, to detail what their money situation would look like in the event of a divorce. In the agreement, the couple describes whatever property they own separately before the marriage, as well as any debts.

Who Does a Prenup Benefit?

Prenups are beneficial to many couples, especially if you are entering the union with a considerable amount of assets or debts. Without a prenup, a married couple has to follow the law for married property rights. This impacts two significant aspects of your financial life:

  • Debt. Any debt your spouse acquires during your marriage may also become your debt.

Are There Any Exceptions to Prenups?

While a prenup is an agreement, it is important to note the legal system does not always look favorably on prenups. In a change from the past, prenups are now valid throughout the United States. However, if a judge determines the language in a prenup is frivolous, unfair, or fails to meet the requirements for your specific state, they will likely disregard it during divorce proceedings.

How do I Get a Prenup?

Though you and your partner can talk through many aspects of a prenup yourself, you will both want to work with separate lawyers at the beginning and throughout the prenup process.

Is it Too Late for Me?

If you are already married, and you realize a prenup would have benefitted you and your spouse, don’t fret. Postnups, or postnuptial agreements, can fulfill a similar role. Essentially, it is an agreement between a married couple regarding how their assets should be divided if their marriage ends.

Final Thoughts on Obtaining a Prenup

No one likes to think their own marriage might end. However, with nearly half of all unions in the United States ending in separation, it is worth considering what the financial consequences of a divorce would be.

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