Prenuptial Agreements may be a Smart Move

Monday, June 8th, 2009

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
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