The sad answer is that there’s no one single answer. However, we will attempt to break down the costs so you understand what you may expect to pay for a postnup, depending on the various factors. From things like the cost of living to your financial landscape to your postnup requests, there are many different aspects that play a role in determining how much your postnup will cost. The good news is that many online platforms are making postnups cheaper and more accessible for everyone, which will hopefully, one day, make the cost of postnups more straightforward.
How lawyers charge for a postnup
Getting a postnup through an attorney works like this: You hire a lawyer in your state. They provide you with a flat rate and usually a retainer fee. They bill against the retainer and may return any leftover money from the retainer at the end of the service. For example, let’s say John hires Amy to be his postnup lawyer. Amy charges $300 per hour, and her retainer for a postnup is $5,000. Amy works on John’s postnup for 15 hours in total. That amounts to $4,500. Typically, Amy would refund the remainder of the retainer ($500) to John.
Pro tip: Make sure you read the fine print on the retainer to ensure that any remaining funds are actually refundable. In certain states and situations, the attorney may not refund that $500 to John.
The factors affecting the cost of a postnup
Now, let’s get into what factors will affect the cost of your postnup. Here’s what to be aware of:
Hourly rate of attorney
It’s basic economics. Where the cost of living is higher, the cost of an attorney’s hourly rate will be higher. In addition, attorneys may charge more if they have more experience or more accolades in the legal field. Lawyers charge for postnups by the hour, so understanding the attorney’s rates is key.
Your financial landscape
If your finances are complex, such as having businesses, RSUs, a real estate portfolio, multiple investment accounts, and shared assets with your spouse, it will take your attorney more time to sift through and understand your finances. More time spent = more money.
Your requests for the postnup
If you have one goal, and it’s to keep a single piece of property separate, then you’re in luck: your postnup shouldn’t take too much time to draft. On the flip side, if you want to cover multiple aspects, such as spousal support, real estate, businesses, and inheritances, it is going to take your attorney more time to draft the agreement. Again, more of the attorney’s time will cost you more, as they are charging hourly.
Revisions to the draft
If you see the first draft of your postnup that your attorney sends over and you send it back with tons of revisions–it’s going to cost you. If you are asking them about each and every little change, this will also cost you. It’s perfectly normal to ask for revisions and ask questions, but just know that it’s not free.
Negotiations
If you and your spouse cannot agree on the terms of the postnup, your respective attorneys will be spending time in meetings, sending emails, and on the phone with each other trying to resolve the discrepancies. The more time you and your spouse spend arguing over what to include in the agreement, the more money your attorneys will charge you.
Questions you have
While we aren’t trying to discourage you from asking your attorney questions, the unfortunate truth of the matter is that asking questions takes up time. Attorneys charge hourly. The more questions you ask your attorney, the more money you will spend.
Tips for saving money on a postnup
While there’s really no way around the fees you will be required to pay from an attorney, there are some ways to potentially lower the cost. Here are some ideas:
Negotiate a flat rate with the attorney
Ask the attorney if they will do the entire postnup from start to finish for a flat rate. They may not be open to this, but it’s worth a try. This allows you to ask questions and feel comfortable interacting with your attorney without feeling like you’re racing against the clock.
Be aware of your hourly expenditure
Keep things concise and come prepared for every single meeting and call with your attorney. Let them know you are being cost-conscious and you want to keep things straight to the point (Please, no small talk!).
Be organized
Another way to cut down on an attorney’s hourly billing is to be organized with your answers, emails, meetings, and documents. For example, if they request financial documents from you for financial disclosure, make sure you provide them in an organized manner so they spend less time organizing and reviewing.
Seek out a more cost-effective attorney
You can also go for an attorney who is newer to the legal practice or charges less. You don’t have to pay for the $600/hour attorney who works at the “best” law firm in the city. Sure, it’s nice, and they probably have really efficient processes, but it doesn’t guarantee anything. You can get just as an enforceable document with a cheaper attorney, too.
The bottom line on postnup cost
What did you learn? That postnup costs vary based on many different factors. From cost of living to attorney experience to negotiation time, there are many things that factor into the cost of a postnup. Don’t worry, there are some cost-effective strategies you can try to use to lower the cost of your postnup. Things like negotiating a flat rate, being efficient and organized, and seeking out a cheaper attorney can help. At the end of the day, getting a postnup to work out certain finances can be really beneficial to some couples and totally worth the price.
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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