Pros and Cons of Prenups

Pros and Cons of Prenups

When you are in love with the love of your life, all you can think of is spending the rest of your lives together. It becomes even more interesting when both agree to get married. There are many things to plan, such as the wedding, reception, types of food to serve guests and where they plan to live together. Another agreement that should be discussed before the wedding day is the prenuptial agreement.

What is a Prenup?

A prenuptial agreement also is known as a prenup or antenuptial agreement is a contract between two people who become valid as couples through marriage. Two people can enter into any agreement, as long as the terms of the agreement are legal. 

Why is Prenup a good idea?

A prenup agreement is a good idea for those trying to protect the inheritance rights of their children who may be from a previous marriage. A prenup ensures that your kids will continue to benefit from your wealth by being beneficiaries. A prenuptial agreement may also be appropriate when you are involved in a business venture in which you do not want your ex-husband to gain control of the property at the end of the marriage. A prenuptial agreement can also deal with other financial details, such as how much help a partner can get from a former husband when he/she has a lucrative career.

Another reason that a prenuptial agreement is imperative is when the other spouse brings huge debts to the marriage. These debts can be mortgages, credit cards, or student loans. The agreement will specify that the liabilities will only be attributed to the person who made them. The couple does not assume the responsibility to pay them.

How much does a prenuptial cost?

The creation of a prenuptial contract may vary depending on the simplicity or complexity of the financial details between you and your spouse. Costs range from $ 1,500 to $5,000 because they may include legal fees. It is always ideal to reach a particular agreement if you are concerned about the legacy of the ownership of your business. You shouldn't be bothered about lengthy court proceedings after the transfer of your divorce. You want professional help before marriage to make sure the policy protects your rights.

PROS of a Prenup

  • Divorce -  A prenup agreement has the potential to eliminate the fear of a bad separation, allowing both parties to decide in advance how he would feel comfortable sharing his property if the marriage does not work. Some believe that the mystery of a possible divorce will allow the couple to focus on the marriage rather than the eventual separation. In the event of a divorce, a good written prenuptial agreement can save you a lot, as well as your spouse, if your assets and debts are broken down by contract.
  • If you have a child from a previous relationship, you can protect the rights of the child on a portion of your company and property through a prenuptial agreement. Usually, a prenuptial agreement protecting children is concluded at the same time as real estate planning and trust.
  • A prenuptial agreement can protect the property you have accumulated before the marriage, as well as to treat some property that you receive during your marriage. If you are older or already married, you may need a marriage contract before trying again. 
  • For the agreement to be credible, each pair must disclose all its assets and liabilities. Asking both spouses to manage their finances is always a good idea before tying the knots. By the way, each party has to hire their lawyer to represent them.

Cons of a Prenup

  • Prenup agreements destroy the romance of commitment. If an unmarried husband wants this agreement, it can lead to discord before marriage. 
  • A prenuptial agreement, if questioned during an action for divorce, can be expensive, which can rather eliminate the reason for getting a prenuptial agreement.

Take Home

If you have children from a previous relationship, I think a prenuptial agreement might be a good idea to protect your children. Also, if you are involved in a family business, you may want to preserve your extended family by entering into a prenuptial agreement. Except for these two examples, I think the decision is rather personal and depends on particular facts and circumstances.