Are you considering a prenuptial agreement? Read on to learn exactly what a prenup is and the pros and cons to consider to help you decide.
A recent study found that only 5% of couples have a prenup in place when they divorce. Prenups are a controversial contact as they are often seen as a catalyst for divorce. Rather than helping the bond of marriage, people believe it causes a marriage to break down because each person’s financials are separate..
However, what if that wasn’t the case? What if a prenup could instead help clarify your financial rights and protect your spouse?
Don’t worry! We’ll get to the bottom of this and help you find out all you need to know about a prenuptial agreement! From what a prenup is, to the pros and cons, you can learn if a prenup is right for you and your significant other.
Now, are you ready to get started? Here’s an in-depth look at a prenup:
What Is a Prenuptial Agreement?
A prenup is a written and legally binding contract that’s created for two individuals before they are married. It generally lists each person’s financials, assets, and property, along with any debts they have. It then states each person’s financial and property rights before and after marriage.
Now, contrary to popular belief, prenups are not just for the rich. Any two people can get a prenup
In fact, a prenuptial agreement can help if you have a unique situation, like if you own a business, have a large inheritance, or plan to be a stay-at-home parent. It’ll not only protect what is yours, but will also protect your spouse by clarifying child support payments or alimony. By planning for the future, you can set yourself and your spouse up for success in the event of a divorce.
Benefits of Prenup
Now, prenups are usually seen as the starting point of divorce; however, they have many benefits to help a marriage through tough times. Below are some of the advantages of a prenup you may not have known:
Clarifies Financial Rights
One of the largest benefits of a prenup is that it clarifies your financial rights, that way, neither party is confused or can take advantage of the other during or after marriage.
After all, a prenup is designed to separate your earnings, properties, and debts in order to simplify the marriage and divorce process. That way, what you have before you’re married is protected and rightly your own.
Of course, there are many ways a prenup can be designed depending on your needs. However, its main objective is to clarify finances and define who will receive them.
Receive Protection from Debt
If one person has significantly more debt and continues to spend more than the other, one way to not have this weigh on the relationship is to get a prenup. You see, if one party racks up a lot of debt during the marriage, then both are at fault. However, why should both parties pay when one contributed to more than half the debt?
That’s where a prenup comes in handy. A prenup can prohibit premarital debt from being paid with joint funds or your business account. That way, your spouse can’t use your funds to pay for their debts, instead, they will have to use their money to pay off their premarital debts themselves.
It not only protects your money from being spent without your approval, but also shields your credit score, so you remain in good standing. That way, your partner’s actions don’t affect you or your money.
Avoid Arguments
Prenups also prevent arguments down the line since your finances are clearly laid out and defined. There’s no need to fight over money or property, those details have already been divvied out and confirmed in the prenup. Even things that might seem little, like expensive paintings or furniture, will be addressed to avoid any confusion and arguments.
You won’t have to worry about having a messy divorce, if you do get divorced.With a prenup in place, the divorce process should be smooth and easy-going. All you have to do is sign a couple of documents, and you’re done.  It’s that easy.
Drawbacks of a Prenup
The one drawbacks is its expense. Since every couple is different, the prenup cost will vary. It’s beneficial if you both have different lawyers, which will undoubtedly add to the cost as well.
The lowest possible total is around $2,500, with the highest averaging around $8,000. Now, not everyone has the ability to pay those totals with the other bills and fees that come with marriage, which is why prenups are so easily passed on as an unneeded expense. However, if you do have the money, why not look into it more thoroughly?
Get a Prenup Today
A prenuptial agreement  outlines each individual’s financials, properties, assets, and debts. In doing so, it clarifies each person’s financial rights, protects spouses from incurring one another’s debts, and even avoids arguments down the road.
The main downside to a prenup is the fact that it can be costly, depending on your financial situation.
If you’d like to learn more about prenups or speak with a divorce attorney, contact us at 402-415-2525. We look forward to helping you!
