These days, many people are signing prenuptial agreements, but is it a good choice for you as well? For that, you should know exactly what a prenup is, what it includes, and the pros and cons of a prenup. Knowing the benefits and drawbacks of a prenup makes it easier for you to decide if you should sign one or not.
Let’s discuss them. This article helps you understand the pros and cons of a prenup in detail. And even clarifies your doubts regarding that. So read till the end!
What is a prenup?
A prenup (or prenuptial agreement) is a legal contract between two people before their marriage. This agreement basically lists all the assets, debts, and any other property and how to divide them between spouses in the event of a divorce. Other than that, you can also include retirement accounts, property rights, and life insurance policies. It’s more common now as compared to previous years, so you too should know if it’s right for you or not. And for that, don’t miss out on reading the pros and cons of a prenup.
Prenup Examples
Even though it’s a smart decision regarding financial security, apart from considering just the pros, you should consider the cons as well. But before discussing the pros and cons of a prenup, let’s understand it better by looking at some prenup examples:
- There is an equal division of assets between both spouses.
- If a person obtains debt before marriage, then he or she is responsible for that, and the other spouse is not accountable for this.
- If one partner owns business assets and wants to safeguard those assets, then they can include them as separate property in the prenup, so as not to divide them during divorce.
- If one spouse earns too little, only then will they get spousal support in the event of divorce.
Child custody and child support are the two main aspects that you can’t include in the prenup agreement, so they’ll be decided at the time of divorce (during the divorce process). To know more about what you can include, what you can’t, and the pricing of a prenuptial agreement, contact the attorney in your state. Now, move ahead and look at the pros and cons of a prenup to make the right decision.
Pros and cons of a prenup
It’s good to know the pros and cons of a prenup, based on which you can make your decision about whether to sign it or not. Let’s first discuss the pros and then the cons of a prenuptial agreement:
Pros of a prenup agreement :
Helps protect assets
A prenup helps both spouses protect their assets, i.e., who holds what in the event of divorce. As a couple, you can decide which assets to share and which will remain separate. If you have inheritance assets and don’t want to lose them even in the worst case, then a prenup proves helpful with this by protecting your assets.
Protects you from some debts
The debts that your partner obtained before marriage are their responsibility, not yours, even after marriage. And the same applies for your spouse-to-be, i.e., they are not responsible for the debt that you obtained before marriage. This is how a prenup protects both spouses from some debts, and that’s a great benefit of a prenup.
Protects business assets
If you own a company and have more assets and net worth, then a prenup is one of the best ways to safeguard your business assets by considering the worst-case scenario. A prenup allows you to include that in your agreement. This is how it benefits you by protecting your business assets.
Makes divorce quick and less expensive
Asset division is one of the biggest issues that lengthens the divorce process and even causes more harassment, which also makes the process more expensive. But a prenup here acts as a savior by making your divorce process smooth, quick, and less expensive. Because the terms of asset division are already decided in the prenup agreement.
After talking about the pros of a prenup, let’s talk about the cons of a prenup, which are as follows:
Cons of a prenup :
May offend your partner
Even though it’s a practical approach for some, but some get hurt. Some may consider a prenup as an unromantic thing and consider it disrespectful in a relationship. Just like you can’t change your point of view, neither can your partner, and that can lead to more disagreements in your relationship. So this is how a prenup may affect your relationship by offending your partner.
Not always upheld in court
A prenup doesn’t mean to always be considered by the court. If the court considers it invalid (validity conditions are discussed later in this article), then it’s not upheld in court. So just make sure to check the validity factors as per your state’s law.
May be more in favor of one spouse
Some sign the prenup by thinking they’ll never get a divorce, so they don’t need to dive into what’s in the prenup agreement. But it matters a lot because you should prepare for the unfortunate event of divorce. So in the event of divorce, your negligence may favor your spouse, and you’ll get less than you deserve.
I hope these pros and cons of a prenup help you decide whether you want to sign it or not. To learn more and clear your doubts, keep reading!
Is a prenuptial agreement right for you?
As every person’s situation is different, so is whether it’s right for you or not. Other than considering the pros and cons of a prenup, you should consult an experienced attorney in your state. Because they can guide you in making the right decision about whether it’s right for you or not. And one more point: before signing a prenuptial agreement, always get it read by your attorney to make sure you understand the clause in a better way. Good luck with your every decision!
What happens if you sign a prenup and get a divorce?
A prenuptial agreement must be valid in order for the court to consider it. If it is invalid, it cannot be upheld in court. Simply understand the state’s laws and rules before preparing a prenuptial agreement to ensure its validity. In general, consider the following conditions to ensure its validity:
- It must be in written form, with a sign and witness.
- Before signing, both spouses must disclose all their assets. Because an undisclosed asset by any of the spouses can make the agreement invalid.
- Both spouses must sign the prenup with their own free will. Because if they sign forcefully or under any influence, it violates its validity.
- In some states, it’s mandatory to have legal representation in court.
In short, it’s good to work with your attorney to clear your doubts regarding a prenup. Because they can guide you best as per the state’s law and your situation. Talking about prenups and getting divorce, a prenuptial agreement can help with the divorce process by somehow making it quick, easy, and less expensive, as the division of assets, debt, and property is already written in clear words.
What happens if you don’t have a prenup and get a divorce?
Getting a divorce without a prenup simply means you have to reach an agreement on the terms of the divorce (regarding asset division, debt, alimony, etc.) either on your own or as enforced by the court. If that decision gets into the court’s hands, they consider various factors to make that decision, and you lose control of the decision. This is how divorce without a prenup works.
