Marriage is a happy time in people’s lives…so why would you want to ruin this with the discussion of a prenuptial agreement? The truth is, more and more couples are choosing to settle financial differences before they get married.
According to BankRate.com, 1 in 3 first marriages end in divorce and about 50% of people’s second or third marriages end in a seperation as well. This isn’t a happy statistic, I will give you that, but smart financial planning may lessen the emotional toll that comes with a separation.
In short, a prenup agreement tends to separate financial assets in case of a divorce. This way if something happens, your finances are treated as though you were never married and those assets that were shared are divided equally.
Think of a prenup agreement as a type of marriage contract. You want to make sure that your agreement is written correctly. In the event that a prenup is not enforceable by law, you may find yourself losing some of your hard earned assets.
According to an article from our partners on BankingMyWay.com, it is suggested that you and your significant other should get representation from two separate attorneys so that your interests do not conflict with one another. This way, everything is kept separate. It is also best to talk about a prenup agreement fairly far in advance. You do not want this to be a discussion or decision that comes up only a week before the wedding ceremony!
Since prenup agreements are not an easy decision to make and may have many conflicting interests, it can cost between $1,000 and $50,000 depending on your lawyer and how long the agreement takes….which could be weeks or even months!
Pros:
* Puts all financial expectations on the table before marriage
* Will avoid more hardships in the case of a divorce
* Often protects the well-being of children from a previous marriage
* Sometimes can make couple stronger (no financial secrets; puts everything on the table)
Cons:
* Not a “happy” discussion before you get married
* Can create hardships between the couple
* Can be expensive depending on how much your lawyer charges
* Don’t want to have to think about divorce before you even get married
Although prenuptial agreements have many times been viewed as a contract for celebrities or millionaires, many “everyday people” are considering these as well. It is something that you should really think through with your significant other to decide whether the agreement is for you. Make sure to consider all of the pros and cons in your own mind before making this important life decision.
Photo: Dani Simmonds
August 8th, 2008 at 4:26 pm
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August 12th, 2008 at 7:07 am
[...] of us have heard of prenuptial agreements and for more information check out a Geezeo article here. But postnuptial agreements are not as common as prenups, but are constantly growing in [...]