Do I need a Premarital Agreement?

What is a Pre-Martial Agreement, more commonly known as a prenup?

            A Premarital agreement is a contract which generally covers most of the issues that come up in a divorce. The number one question I get asked is, if I have a Premarital Agreement (Prenup), does it mean I am betting the marriage is not going to last? The easiest answer is no. A Premarital Agreement (Prenup) is an agreement that never comes up, unless you are getting divorced. It’s similar to buying car insurance. It doesn’t mean you are planning on getting in an accident, but if you do you want to be covered. 

Why should you get a Premarital Agreement (or should you?)

            Not everyone should have a Premarital Agreement. There are several situations where it may not be necessary. In general, you should start considering one if you answer yes to any of the following questions: 

            Do you own real estate, either on your own, or in a partnership?
       Do you have significant assets, (More than $50,000)
            Do you make significantly more than your fiancé?
            Do you own any part of a business?
            Do you have significant retirement benefits?
            Do you or your fiancé plan to go to school for an advanced degree while the other works?           

            If you answered yes to any of the above, it is probably worth consulting with an attorney to see if a Premarital Agreement makes sense in your situation. In general a Premarital Agreement can help clarify any issues down the road regarding what is your property and what is your spouses, or how much in spousal support each spouse is expecting.           

            In addition to covering issues at divorce, for some situations, a Pre-Marital Agreement may make sense to cover situations during the marriage, such as management of household bills, joint bank accounts, or how you will handle putting one or both of you through school. They are good questions to discuss prior to marriage, whether you are wanting a Pre-marital agreement or not.

How to get one?          

            The first step is to schedule a consultation with one of our family law attorneys. They will walk you through the steps, and the necessary disclosures. It is important to note that the Premarital Agreement must be presented to the fiancé no less than 7 days prior to signing. In reality you should start as soon as possible. Giving your soon to be spouse a Premarital Agreement a week before the wedding does not set you up for a successful marriage. Both sides should have a separate attorney review the agreement, which takes additional time. While there is no perfect time to start that conversation, generally at least a month before the wedding gives everyone adequate time to have the agreement prepared and settled.

Summary 

            While Pre-Marital agreement may not be necessary for everyone, it is certainly worth consulting with an attorney to find out. In general the cost will vary significantly based on the complexity of the assets you are protecting and the amount of time it takes to get all the parties in agreement. In general the cost will vary between $1500 - $7500. While this can be a lot, especially while you are planning for a wedding, it is substantially cheaper than the cost in the event of a divorce. Remember the car insurance example.

            If you think a Premarital Agreement may be something you need, fill out the form below to contact one of our family law attorneys.