Thinking about getting married in The Land of Enchantment? Well, you certainly have good taste! From its picturesque desert landscapes to the distinct adobe architecture, there’s no other state with a flair quite as unique as New Mexico. Even when it comes to prenups, New Mexico has a distinct way of doing things. So let’s take a hot air balloon ride through the prenup process in New Mexico, shall we?
Is a prenup worth it?
We might be a wee bit biased here, but yes! A prenup, or “premarital agreement” as it’s known in New Mexico, allows you and your fiancé to decide how you want to divide assets (think: bank accounts, houses, vehicles, etc.) and debts (think: student loans, medical debt, mortgages, etc.) if you end up getting a divorce. It’s a simple yet highly effective way to plan out your financial future, even if things don’t go as planned.
Without a prenup, New Mexico’s default laws will decide how to divide your assets and debts. New Mexico is one of nine community property states where courts divide marital assets and debts equally (yes, 50/50) (N.M. Stat § 40-3-8). Let’s say you purchase a home with your new spouse. Under New Mexico’s default laws, both spouses would be entitled to an equal share of the property, regardless of whose name was on the deed or who paid for it, with few exceptions. Would you prefer to divide the home according to the amount you or your spouse contributed to the property instead? Then you should consider a prenup before you tie the knot!
What is the minimum net worth you should have to get a prenuptial agreement?
Contrary to popular belief, prenups aren’t just for rich people! There’s no minimum amount of income or overall net worth that you need to have to get a prenup. Anyone can benefit from having a well-drafted prenup. Even if you don’t have a ton of valuable assets now, don’t forget that can always change in the future.
For example, let’s say you start learning about stock market trading right before you tie the knot. Sure, your total investment may not be worth much when you get married. But over the lifetime of your marriage, the value will increase as you become more knowledgeable and as you consistently invest. Would you be okay with dividing the appreciated value of your stock market investment with your spouse if you end up getting divorced? Because unless your prenup states that you want the appreciated value of your pre-marital assets to be classified as separate property, New Mexico’s community property laws will divide the appreciated value of your investment equally (yes, 50/50) between you and your spouse. Check out N.M. Stat § 40-3-8 to read the fine print about New Mexico’s property division laws.
How much is a prenup in New Mexico?
The overall price for a prenup in New Mexico will vary based on whether you decide to retain a local attorney or utilize an online service (like us).
The average hourly rate for a family law attorney in New Mexico is $293. Keep in mind that you and your fiancé will both need to hire separate attorneys. The amount of your final bill will fluctuate depending on how many hours of revisions and negotiations you may need until you reach an agreement that both parties agree to. As you can probably imagine, these costs can start to rack up pretty quickly.
On the flip side, HelloPrenup has streamlined the prenup process for you. You can create a prenup for a flat fee of $599 per couple with the option to add on attorney services at a discounted flat rate. You’ll get a state-compliant prenup and can put the money you’ll save on attorney’s fees toward those wedding planning expenses!
How do you set up a prenup in New Mexico?
Getting started on your prenup in New Mexico might seem difficult, but it doesn’t have to be! We’ve broken the prenup process down into five easy steps:
Step 1: Have a Chat With Your Bride or Groom-to-be. Have a conversation with them to explain why you want a prenup and why you think it would be beneficial for your relationship. For an overview of what you can include in your prenup, check out N.M. Stat. § 40-3A-4. Your prenup can outline a wide range of topics, including how you’ll divide assets you acquire during the marriage, which state’s law will govern your prenup, and whether gifts and inheritances from family members should be kept separate.
Step 2: Choose Between an Online Service or a Local Attorney. Your prenup has to be in writing to be valid and enforceable in New Mexico (N.M. Stat. § 40-3A-3). If you decide to go with a local attorney, you can get referrals from friends and family, online searches, or the New Mexico State Bar. With HelloPrenup, we’ve taken care of everything for you. Our platform guides you and your fiancé through the prenup creation process so you can make a state-compliant agreement from the comfort of your own home. Once you generate a draft of your prenup, you can select optional attorney services to consult with a New Mexico attorney for added peace of mind.
Step 3: Show Me the Money! New Mexico requires fiancés to provide each other with fair and reasonable financial disclosure (N.M. Stat. § 40-3A-7). This means detailing all of your assets and even debts, along with their corresponding values. To make sure you don’t inadvertently leave anything out, start by rounding up your financial documentation (i.e., bank statements, your most recent tax return, etc). This step is crucial for an enforceable prenup, so really take your time with this part. For example, if you list a 401(k) account number but not its value, this could jeopardize the enforceability of your prenup (N.M. Stat. § 40-3A-7).
Step 4: Review, Revise, Repeat. You should both go over the draft of your prenup with a fine-toothed comb to make sure it reflects what you’ve discussed and agreed to. Don’t sign off on anything until you’re satisfied with the final end product.
Step 5: The Grand Finale – Sign and Notarize. This is the home stretch! You both need to sign the agreement voluntarily for it to be valid in New Mexico (N.M. Stat. § 40-3A-3). If one spouse can prove that they were pressured or coerced into signing, it will not be enforceable (N.M. Stat. § 40-3A-7). Although notarization is not a statutory requirement in New Mexico, it adds another layer of protection to your agreement. How? It weakens any future argument that your spouse may make, claiming that they didn’t sign the prenup or that they did not know what they were signing.
Can a prenup leave a spouse with nothing?
This is a big no-no in New Mexico, particularly when it comes to spousal support (a.k.a., “alimony”). Spousal support is typically awarded during or after a divorce. The general idea behind spousal support is based on the fact that the financially dependent spouse should not be left impoverished after a divorce.
Most states allow fiancés to agree on terms regarding spousal support in their prenup. However, it’s important to note that New Mexico is not one of those states. So much so that in New Mexico, waiving your right to spousal support in a prenup is against public policy and can render your prenup unenforceable (N.M. Stat. § 40-3A-4(B)).
The court underscored this in the 2010 case, Rivera v. Rivera. At the time of prenup, Wife and Husband agreed not to request financial support from the other spouse. However, when the parties divorced, Husband contested the validity of the prenup based on this clause. Additionally, the Husband argued that the prenup should not be enforced because he did not speak much English and did not fully understand what he was agreeing to at the time. The court agreed with the Husband and determined the prenup was both unconscionable (i.e., one-sided) and against public policy, as New Mexico has an interest in making sure one spouse is not left unable to support themselves financially after a divorce.
The bottom line on how to get a prenup in New Mexico
Well, if you’ve made it this far, give yourself a pat on the back! Getting a prenup in New Mexico is as easy as a walk in the White Sands National Park…assuming you’re into dunes of gypsum sand, that is. By following the steps we’ve mentioned, you’ll be well on your way to creating a valid and enforceable prenup in New Mexico. If you get stuck, don’t hesitate to reach out to a local attorney or HelloPrenup to get you back on track.
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