Prenuptial Agreements: No Longer The Realm For The Insanely Wealthy
Most people associate prenuptial agreements with celebrities or billionaires protecting vast fortunes. However, prenuptial agreements, or “prenups,” aren’t just for the elite. Today, people with more modest assets – worth only six or seven figures – are increasingly turning to prenups as a smart financial safeguard. According to a survey by the American Academy of Matrimonial Lawyers, over 62% of attorneys reported a rise in prenuptial agreements among their clients, especially those with assets under $1 million. As people accumulate savings, retirement accounts, or property before marriage, they see the value in proactively managing finances and minimizing the potential for conflicts down the road.
What a Prenup Can – and Can’t – Do
A prenuptial agreement is essentially a legal contract between two partners before they marry. This agreement specifies how financial assets and liabilities will be divided in case of divorce or death, outlining the financial rights and responsibilities of each spouse.
What’s Covered in a Prenup:
Assets and Property Division: A prenup can define how property, businesses, real estate, and other assets will be handled if the marriage ends.
Debt Protection: Partners can protect each other from personal debt liabilities, ensuring one person’s debt won’t affect the other after a separation.
Spousal Support: Prenups can establish or waive potential spousal support, also known as alimony.
Inheritance Rights for Children: For those with children from previous relationships, a prenup can clarify inheritance rights.
What’s Not Covered in a Prenup:
Child Custody and Support: Child-related matters cannot be decided in a prenup. Courts determine custody and support based on what’s in the child’s best interest.
Unfair or Unlawful Clauses: Prenups cannot include stipulations about personal lifestyle choices (such as physical appearance or behavior). Courts typically reject clauses that are deemed unfair or unethical.
The Legality of Prenuptial Agreements
Prenuptial agreements are legally binding and recognized in all 50 states, though the specifics can vary based on state laws. Each state has its own rules regarding what makes a prenup enforceable, and federal law doesn’t oversee these agreements directly. In order for a prenup to be considered legally valid, it generally needs to be in writing, signed by both parties, and notarized. Additionally, each party should have their own legal representation to prevent potential claims of unfairness or coercion.
Can Prenups Be Changed?
Yes, prenups can be changed – and, in some cases, they should be. Over time, a couple’s financial and personal circumstances may shift, and a modification, or amendment, to the prenup can account for these changes. Both spouses must agree to any amendments, and it’s wise to have an attorney review any modifications to ensure the agreement remains enforceable.
Postnuptial Agreements: Creating an Agreement After Marriage
If a couple decides to address financial matters after marriage, they can create a postnuptial agreement, or “postnup.” Like prenups, postnups are legal and enforceable in all 50 states, although their enforceability standards can vary from state to state. They serve a similar purpose as prenups, outlining how assets and debts should be managed if the marriage dissolves, but they are signed after the wedding. While prenups tend to be more straightforward to enforce, postnups can be a valuable legal tool for couples whose financial picture has changed after marriage or who didn’t consider a prenup beforehand.
Why Consider a Prenup?
It may seem unromantic to prepare for the possibility of divorce before the marriage has even begun. However, given that about 50% of marriages in the U.S. end in divorce (according to the CDC), planning ahead can be a wise move. Prenups offer transparency. They can help couples clarify their financial expectations from the outset. This proactive approach can reduce the likelihood of costly, emotional disputes if a marriage doesn’t last. For many couples, addressing these matters upfront is not only practical, it’s actually a testament to their commitment, because a prenup ensures that both parties feel protected and understood.
The Value of a Family Law Attorney in Drafting a Prenup
Drafting a prenuptial agreement can be a complex process, and it’s best done with the guidance of a skilled family law attorney. A legal expert ensures that the prenup is crafted to protect both parties’ interests and is fully enforceable under state law. Additionally, with a compassionate, experienced attorney by your side, you can work through potentially sensitive issues in a respectful and empathetic manner, prioritizing the well-being of both partners.
Take the Next Step with Harmony Law
At Harmony Law, we understand that every family is unique, and we’re committed to providing you with top-tier legal expertise at an affordable price. Whether you’re considering a prenup or want to discuss your options, our team of empathetic, skilled attorneys is here to help you protect what matters most. Let us support you in building a future of security, peace of mind, and understanding. Contact Harmony Law today to schedule a consultation.
