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To Get or Prenup or Not To Get One: That Is The Question


how do prenups work

As you prepare to get married, you often have a tough decision to make. Should you get a prenup, or is it okay to skip it? Fortunately, the decision is easier if you know what a prenup does. If you’re wondering, “How do prenups work, and do I need one if I’m going to get married?” here’s what you need to know.

What Is a Prenup?

A prenuptial agreement – commonly referred to as a prenup – is a legal contract between both members of an engaged couple that outlines how specific assets are treated should they marry and later divorce. Usually, the focus is on assets (like money, investments, property, or businesses) and debts held by each party individually before the marriage, ensuring they’ll be separated in a manner that both find agreeable if the relationship fails.

Prenups may also contain a variety of special clauses. For example, some have provisions about changes to spousal support should the relationship dissolve due to adultery. There may also be clauses that outline alterations to the agreement if the couple has children after marrying.

How Do Prenups Work?

Functionally, prenups are a legally binding contract if they’re properly created and executed in accordance with applicable laws. Typically, they’re highly enforceable, and courts will uphold what the prenup says in the majority of cases, barring very specific circumstances.

For example, a prenup – or specific portions of it – potentially isn’t enforceable if clauses within it don’t align with local law. Additionally, if the prenup isn’t willing signed by both members of a couple and properly notarized, it may not be executable in some states. There can be other situations where a prenup becomes unenforceable, too, the exact nature of which may vary by location.

While you draft a prenup before getting married, the agreement isn’t effective until the marriage actually occurs. Then, if the couple divorces, it serves as the basis for distributing any assets or debts outlined in the contract. If there are new assets or debts that are acquired after the marriage or pre-existing ones that weren’t explicitly addressed, those are distributed during the divorce proceedings.

Do You Need a Prenup?

Generally, a prenup is wise for any couple where one or both members have assets they’d like to protect or pre-existing debts that need addressing. This is particularly true in community property states where couples would otherwise have to split assets and debts equally.

You don’t have to be rich or wealthy to need a prenup. If one party has an existing business, an inheritance of family assets, significant investments or savings, debts or obligations relating to a prior marriage, significant personal debts, or anything similar, addressing it in a prenup is often wise. If either partner has children from a previous relationship, a prenup is also recommended to ensure any existing planned inheritances can remain in the family.

In many cases, a prenup can also limit the cost of a divorce. It streamlines part of the division of assets, which may make working out a suitable agreement for the remaining assets less cumbersome.

Ultimately, a prenup serves as a type of financial protection. If one or both members of a couple feel they have something they need to safeguard from future division should a divorce occur, a prenup is a logical solution. While it isn’t the most romantic document, it’s a simple way to plan for your financial future should the unexpected occur and the marriage end, providing significant peace of mind.

Do you think that getting a prenup is a good idea for most couples? Did you have a prenup and found it was worthwhile? Did you choose not to get a prenup only to later regret that decision? Share your thoughts in the comments below.

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