5 Myths About Prenups
A prenuptial agreement is a contract entered into before a marriage that outlines the property and financial rights in case of a divorce. A prenup, as it is often referred to, doesn’t mean that you are already thinking about dissolving the marriage. It’s a tool of trust between two people who want to plan for the success of the marriage. A prenup sets expectations and resolves future conflict. Here are five common myths about prenups to help you decide whether a prenup would be beneficial to you.
1 – Prenups Are Only For Wealthy Couples
Any couple can have a prenuptial agreement. The prenup identifies each spouse’s property and debts and how those assets are divided in the event of a divorce. If you’re involved in a startup or new business, a prenup can protect you and the business.
2 – Prenups Are Only For a Divorce
A prenup can help establish an estate plan if there are other family members involved. Your prenup isn’t only a contingency plan in case of divorce. There are many other reasons a prenup benefits both parties.
3- Prenups Only Protect the Spouse With More Money
Prenuptial agreements protect both spouses. In fact, when an agreement is one-sided, it can be thrown out in court. Your prenup can give both parties peace of mind in the event of divorce. It can outline spousal support and distribute assets fairly.
4 -People Who Get a Prenup Have a Weak Relationship
Discussing financial matters isn’t easy, so couples who can negotiate a prenuptial agreement often have a stronger future than couples who leave their financial status up to fate. Prenups aren’t about setting your marriage up for failure. It’s about starting out strong with everyone on the same page financially.
5-Prenups Are Expensive
Consider that 50% of marriages end in divorce. Also consider the cost of litigation in a divorce. It could run you thousands of dollars. A prenup is much more affordable than the potential cost of a divorce. Each spouse does need a lawyer, but when a couple can discuss their financial future, the rewards are endless. A fair and equitable prenup saves time, money and stress if the worst does occur in your marriage.
A prenup can help you start your marriage off on a strong financial note.