If you have suffered a bad divorce in the past and are planning to remarry, the prospect of marriage can cause a great deal of financial anxiety. Enter prenups: the remedy to alleviate that anxiety and provide you with a safety net.
As a divorce attorney in Los Angeles, I helped out with my fair share of celebrity prep. However, many people are beginning to understand that prenups aren’t just reserved for celebrities and the fabulous rich. Many couples (those who have been married before and have been married for the first time) have found that there are many benefits to getting a prenup before saying, “I’ll do”.
What is a prenup?
A prenup is a contract that the future spouses sign, stating their respective property rights and other financial rights / obligations after their marriage and also in the event of a divorce. Custody and alimony issues are usually not included (but can be affected so be careful).
Who should get one?
Anyone who has something to lose. Many people simply want to start their married life without any concerns or resentments about financial fairness. Some individuals receive preparation to protect the interests of family businesses. Some are business owners who need to keep operations predictable to their employees and management. Others are people who have already been married and need to be sure that their retirement will be safe no matter what.
Benefits of a prenup
There is security knowing your assets are protected. This security enables you to begin your marriage trusting your love and devotion for one another, without looking over your shoulder too much.
One of the main points of a prenup is avoiding the emotional / financial costs of litigation. When the contract sets out what to do in the event of a divorce, there is much less arguing. Hopefully then you can keep more of what the lawyers would otherwise get!
Think of a prenup like life insurance: you obviously hope and plan that your family never has to cash it, but the security you get for your family through a safety net is gold.
Cons of a prenup
It can be difficult to discuss difficult topics without the benefit of a crystal ball. The best preparation attempts to solve problems that may take years or decades, if any, to arise. These conversations can be more difficult than talking about your estate plan. Death is certain; Divorce is common, but not safe.
Cracks in the relationship can show when the word “prenup” is published, but most couples come out empowered and with a better understanding of themselves and their relationship.
Who is doing this nowadays?
Everyone. Simple preps aren’t particularly expensive (just don’t use an online form). Have a look around and speak to lawyers in your area to find out their rates and expertise.
Should Millennials Consider Getting A Prenup?
In my experience, millennials generally view the world as unstable and insecure, even when they are successful. More than ever, the world can change instantly. A prenup often brings a sense of comfort and peace of mind into the future in an increasingly shaky world. The cold, harsh reality is that nearly 50% of marriages end in divorce – regardless of whether you’re a millennial, a boomer, or a gene xer. Millennials can benefit from prenups just as much as anyone else. Divorce is difficult enough without being overwhelmed about your financial future and how much you will have to pay to get through.
How can you talk about it with your partner?
Be open about your needs and how it could help you both. And since tango takes two, if you are the one who has to pick up the pieces, don’t be afraid to be honest with fears and worries about the future. These honest conversations can strengthen the bonds of your new family in ways that will give you an advantage as you walk your life together.
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