If you're thinking about getting a prenup, here's everything you need to know.
Oct 20, 2021
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What Is a Prenuptial Agreement?A prenuptial agreement, often known as a prenup, is indeed a written contract that describes an engaged couple's rights and duties regarding premarital and marital debts, as well as what would happen if their marriage ended in divorce or death.
What Does a Prenuptial Agreement Cost?
It can range from $1,500 to $10,000, or even more if the estate is particularly convoluted. Please Jones, Esq., a family law attorney in Chicago, Illinois, argues that a simple agreement can be created for a flat price. However, attorneys would often charge their hourly fee for more involved situations. Postnuptial agreements may be more expensive because the parties are now married, and marital property must be addressed. "A well-drafted contract can be worth its weight in gold if there is a divorce.
Prenuptial Agreements vs Postnuptial Agreements
Postnuptial contracts are comparable to prenup, but they take place after the couple has married. "They're just as legally binding as prenuptial agreements," Lindsey explains. "The reasons for getting one vary—sometimes parties that we're unable to complete the prenuptial agreement before the wedding will return to it after the wedding, maybe a heritage is forthcoming, and the parties want to address it, and sometimes a large liquidity event, such as the sale of a company, is about to occur, and the stakeholders want to address what happens with the proceeds."
When should a prenuptial agreement be started?
As soon as possible because there are advantages to having candid dialogues when emotions are low. "You don't want to add to your stress by discussing your premarital agreement with your wife or attorney so close to your wedding date," Jones advises. "Each couple's timeline for entering a prenuptial agreement is different, but I recommend concluding one at least 30 days before the wedding date." Most engaged couples keep a to-do list of things to do before their wedding day, and executing your prenup should be at the top of that list."
At least six weeks before the prenuptial agreement is signed, the final draught must be submitted to the party whose counsel did not prepare the deal. "They and their separate lawyers would execute the pact once everyone has authorised a draught. It must be demonstrated that both parties have the legal capacity to enter into a contract and that the deal was not entered into under duress, fraud, or undue influence.
What's the best approach to start a prenuptial agreement discussion?
Many partners are hesitant to discuss prenups for fear of jeopardising their relationship or offending their future spouse. "However, to have a good marriage, both partners must be capable of communicating well, even when discussing complex matters. If they can have this talk healthily, it tells a lot about what they'll be capable of handling in the future. When the conversation does happen, be ready to listen and attempt to understand your partner's point of view without interrupting.