To cut to the chase: anyone can get a prenup. There’s no requirement that says you need a certain amount of money or status to get a prenup. Even if you have $0 in the bank, a prenup could still be beneficial to you in several ways. It’s a common misconception that prenups are only for the rich. And it’s just not true that if you don’t have a billion dollars, then it’s a waste of your time. Keep reading to learn who can get a prenup and how it may benefit them!
Do you need millions to need a prenup? Nope!
It’s a myth that prenups are only for the super-rich. Here’s why they make sense for everyday people, too:
- Protect What YOU Value: Maybe it’s not a mansion but your modest savings account, a car, or a small apartment you’ve purchased. A prenup lets you keep what’s valuable to you in case of divorce.
- It’s About Future You: Even if you don’t have much NOW, what about what you build together? A prenup helps protect your share of a future home, business, etc.
- Example: You paid off a small apartment you purchased years before meeting your spouse. You don’t get a prenup because you (wrongly) think you don’t have enough money for a prenup, given the apartment isn’t worth much. Plus, you bought it before you even knew your spouse; it’s yours, right? Well, you get married and live happily ever after… for a few years until things go south and the marriage ends. The divorce court ends up deciding that your apartment should be considered marital property. The result? Your apartment will be divided up between spouses. Ouch!
Bottom Line: A prenup isn’t about how MUCH you have; it’s about protecting the things that matter to you, big or small.
Why prenups are vital for stay-at-home parents
If you are a homemaker, then a prenup may be a good thing to consider. Let’s put it this way: stay-at-home parents don’t receive a “real” income (although they work very hard). In fact, the equivalent salary of a stay-at-home parent’s work is about $126,725! Without further ado, here’s why prenups are important for stay-at-home parents:
- Balance out the Wealth: You may not get a paycheck, but your contributions are just as important! A prenup can ensure that’s reflected financially if the marriage ends through things like alimony and lump sum clauses.
- Protect Your Future Security: Divorce can leave stay-at-home parents financially vulnerable. A prenup provides a safety net to ensure you are supported even if you split.
- Housing Support: You can include a clause, such as a primary residence clause, that lets you stay in the family home longer during the divorce and possibly for a period of time after, easing the disruption for kids.
Takeaway: A prenup isn’t about distrust, it’s about fairness. It acknowledges your sacrifices and helps ensure your well-being, regardless of what the future holds.
You have an inheritance coming your way
Maybe you have no money now, but you will one day, thanks to your dear old Dad. Even though it may seem like eons away, you feel like you don’t even need to bother with a prenup now. Plus, inheritances are usually protected, right? WRONG!
Inheritances are not automatically “safe” from being split up in a divorce, despite popular belief. If you have a future inheritance, then a prenup may be for you.
Don’t forget about gifts
Not only inheritances but gifts, as well. Has your Mom or Dad or friend or Grandma ever written you a really large check for Christmas or a birthday? Or, if you’re really lucky, maybe you’ve been gifted a house. Well, these things would be considered a gift and may be worth protecting in a prenup.
Not to mention all those wedding gifts you may be receiving after walking down the aisle. A prenup can delineate what should happen to gifts if the marriage ever comes to an end.
You or your spouse have debt
With student loans consistently hovering at about $30,000 per borrower, current undergraduate interest rates at nearly 5%, and graduate student interest rates between roughly 6.5% and 7.5%, it’s a no-brainer that people with partners who have student loans should consider getting a prenup.
And that’s just for the student loans. What about car loans, credit card debt, and business loans?
All of these kinds of debt can become a mutual debt in the event of a divorce, even if only one person borrowed it. Yikes!
In a prenup, you can dictate that pre-marital debt and debt incurred during the marriage should be the borrower’s debt and their debt alone. Phew!
So, even if you have no money, but you have some debt or your partner has some debt, a prenup may be a good idea.
When wealth differs, prenups can create balance
It’s a myth that prenups only benefit the richer partner. They can be essential for ensuring BOTH people feel secure, especially when finances are unequal. Here’s how:
- Protecting the Wealthier Spouse: Yes, it prevents pre-marriage assets from being divided unfairly in a divorce. This offers peace of mind to those people who worked their tail off to get where they were before getting married.
- Supporting the Less Wealthy Spouse: A prenup can simultaneously include provisions to protect the less wealthy spouse, like:
- Lump-Sum Payment: Providing financial stability post-divorce by having the wealthier person pay the other a lum sum.
- Alimony Rights: Ensuring potential for ongoing financial support even in a split.
- Sharing Future Growth: Defining what percentage of wealth built DURING the marriage is considered joint property
- Example: Lily and Pete have a great wealth disparity and find a solution that respects his desire to keep his beloved properties but also gives her a safety net for starting over if needed.
Bottom Line?: A well-crafted prenup levels the playing field. Both people have something to gain, making it a true win-win.
Prenups for pet parents
If your furry friends are like family, a prenup can help ensure their well-being if your relationship changes. Here’s why it matters:
- Pets Aren’t Property (But the Law Might Treat Them That Way): Sadly, in many states, pets are considered assets, just like a car. A prenup lets YOU decide what’s best for them according to their well-being and not as if they were a lamp.
- Avoid Heartbreak: Prenups prevent the uncertainty and potential fight over who gets to keep your beloved pet.
- Practical Matters: A prenup can outline:
- Primary Ownership: Who gets each pet
- Vet Bill Responsibility: Ensures their care continues uninterrupted
- Visitation Rights (In Some States): Allows you to stay connected, minimizing disruption for the pet
- Your Example Story: The Bella and Max scenario makes this concept relatable and shows how a prenup provides clear direction.
Takeaway: A prenup is about protecting what you love. For many couples, that includes their pets!
You or your spouse work in a high-risk industry
If you or your spouse work in a high-risk industry, such as the military, you may want to consider a prenup for the life insurance clause.
Adding a life insurance clause to your prenup will require your partner to maintain a life insurance policy, in your benefit, with a certain death benefit amount. And vice versa, they can also require you to have one, as well.
Although it may be morbid to think about, this can help bring you peace of mind in knowing that you or your spouse will be covered if the worst were to occur.
The bottom line
If you’re thinking prenups are only for the super-rich, it’s time to reconsider! Prenups offer protection and fairness for everyone. Whether you want to safeguard your modest savings, plan for a future together, ensure financial security as a stay-at-home spouse, shield yourself from debt, protect inheritances, or even decide who keeps beloved pets – a prenup can help. It’s not ALL about how much money you have but about protecting the things that matter to YOU. Think of a prenup as a tool for building a strong foundation for your marriage, regardless of your current financial situation.
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: [email protected]
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