Prenuptial Agreements may be a Smart Move
Monday, June 8th, 2009 at 7:12 am
A prenuptial agreement spells out the rights of each party and the assets that they are bringing into the marriage. Having this before a wedding may lessen the incidence of a messy divorce.
Since 40% of marriages usually end in divorce (based on Census data), it would be worth considering a prenup especially for people with significant assets, no matter how uncomfortable it sounds.
But before you draft this agreement, find out if a prenup makes sense for you by answering these questions:
1. Is it for me? – Prenups protect people at all kinds of income levels. They’re not just for the rich.
2. How much will I pay? – The cost would probably be a thousand dollars or more. Some attorneys may charge $1,500 to draw the document either for an hourly rate or a flat fee.
3. What does it cover? – A prenup’s objective is to sort out “who will own what” in case of a divorce as well as what debts or properties must be shared in marriage.
4. What should not be covered? – You can’t waive away children’s rights. However, you could state how the child must be raised.
5. How often should it be updated? – It is a good idea to update your prenup when there are significant changes in your situation or events such as career change, inheritance, or birth of a child.
Tags: attorneys, Census, Divorce, marriage, prenup, prenuptial agreement