Let’s face the facts: nearly 50% of all marriages end in divorce. That’s a scary number! Whether you are thinking about getting engaged or already planning the wedding, the thought of divorce can be daunting. It doesn’t have to be, though! Getting a prenup can help put your mind at ease. We like to call it “marriage insurance” for that exact reason!
With a prenup, you can save eons of time, money, and sanity if you do end up separating. Not only that, but without a prenup, your state law will apply, and you probably won’t like that outcome. Plus, prenups are actually an effective tool for communication. So, along with protecting your assets, you get the added benefit of aligning future life and financial expectations with your fiancé.
What does a prenup do?
What specifically goes into a prenup depends on your specific circumstances; there is no cookie-cutter prenup template that makes sense for every single couple. No two couples have the exact same financial and personal scenarios, so it only makes sense that no two couples should have the exact same prenup.
Prenups are most commonly used to:
- Protect assets, such as bank accounts, real estate, investments, and retirement funds,
- Safeguard you from your partner’s debt,
- Protect businesses, and
- Protect inheritances and gifts.
On the other hand, a prenup generally cannot provide instructions for child custody or child support. You cannot use a prenup to determine your child’s rights. Children have their own needs and desires, so you cannot contract their rights away.
Who should get a prenup?
Everyone should get a prenup. Unless you have a crystal ball that can tell the future, you truly never know what can happen. Do you think Mackenzie Scott (Jeff Bezos’ ex-wife) expected them to become one of the richest couples on earth when they got together? Doubtful! Her payout was a cool $38 billion (with a “B”), and they allegedly did not have a prenup.
The moral of the story is that even if you don’t have much now, you might in the future. Although your net worth may never get quite as high as the Bezos’, anyone would hate to say goodbye to their hard-earned money.
If you do have some assets now, then you definitely want to get a prenup. A prenup can protect your assets by outlining ownership in the event of a divorce. Expecting a hefty inheritance one day? You need a prenup. It is a common misconception that inheritances are protected. They’re not and may be split up in a divorce. A prenup can protect that inheritance and declare it as yours and yours only.
What happens if you don’t have a prenup?
Most people don’t realize they already have a “default prenup” – your state’s divorce laws! These laws dictate how your assets and debts will be divided if you divorce without your own prenuptial agreement.
Understanding Your State’s System
- Community Property (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin): Assets and debts acquired during the marriage are generally split 50/50. Gifts, inheritances, and property owned before marriage are usually considered separate property. There are exceptions to this, depending on the state.
- Equitable Distribution (All other states that are not community property): A judge equitably splits your assets and debts. This doesn’t mean a 50/50 split! Factors like the length of the marriage, income differences, and contributions to the household all play a role in the judge’s decision.
Why a Prenuptial Agreement Matters
A valid prenup overrides those “default” state laws, giving YOU control over:
- Asset Division: Protect what you bring into the marriage and decide how jointly acquired property is split.
- Debt Responsibility: Avoid getting stuck with your spouse’s pre-marriage debt or liabilities incurred during the marriage.
- Spousal Support: Ensure that you and your partner are on the same page about potential spousal support–whether that’s waiving it completely, modifying it, or leaving it up to default laws.
- Predictability: Prenups provide certainty and reduce the potential for expensive and time-consuming courtroom battles.
Why your divorce could take longer and be more expensive without a prenup
It’s no secret that divorces can be long, costly, and incredibly stressful. But what if there was a way to streamline the process? Enter the prenuptial agreement – a potentially game-changing document that reduces cost, time, and stress. I mean, is there really anything better than that?
How long does a divorce take without a prenup?
- The average divorce takes about a year, according to Forbes.
- That duration can increase significantly with contested issues like property division or spousal support, according to a survey.
- In some states, like California, the average divorce can last 15 months or more.
How a prenuptial agreement can speed up the process
Picture a prenup like your roadmap for everything you need in case the marriage comes to an end. They proactively address potential disputes by outlining property ownership and financial matters before a divorce even happens. This means fewer things to fight about, saving time and legal fees.
The Financial Impact of Not Having a Prenup
- Without a prenup, divorce costs can skyrocket – averaging $15,000 – $20,000 or even more.
- Attorney fees are a major factor. The more disagreements you have, the longer your lawyer works on your case, and the higher your bill goes.
- A prenup minimizes disputes, meaning less billable time for your lawyer and lower costs for you.
The Emotional Toll of Divorce and How a Prenup Can Help
- Divorce is highly stressful. The longer and more complex it becomes, the greater the emotional strain.
- Prenups can alleviate stress by making the divorce process faster, more predictable, and less expensive – preserving your sanity!
Takeaway: While no one wants to think about divorce while planning a wedding, a prenuptial agreement could be one of the smartest investments you’ll ever make. It can protect your time, money, and emotional well-being in the unfortunate case things don’t work out.
As if any more convincing was needed…but… Do you remember this iconic pop culture moment when Nicole Kidman had just finalized her divorce from Tom Cruise and was caught by the paparazzi walking out of her attorney’s office? As you can see in the picture, it really speaks to the relief one can get from a divorce finally being over with!
Final thoughts
Who doesn’t want to create their own rules for their property while also saving time, money, and sanity? A prenup can help you accomplish all of those things. And it’s really very simple, especially with HelloPrenup. You can get a prenup from the comfort of your own home with a few clicks of a button. Co-create your future & protect your ass(ets). Get started on your prenup today.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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