A prenuptial agreement, or “prenup” for short, is an agreement executed before marriage to determine which party gets what if there is a divorce.
Even though you probably aren’t thinking about divorce right before you get married, if you get divorced down the line, having a prenuptial agreement can make a divorce go much more smoothly by determining the division of assets ahead of time.
Does a Prenup Mean You Are Planning for Divorce?
Much as buying auto insurance doesn’t mean you are planning for an accident, a prenuptial agreement doesn’t mean you are planning for a divorce. What it does mean is planning for the unexpected. It is an opportunity for couples to create a document that outlines their financial goals and priorities. It means that couples are planning for their financial future.
Do You Need a Prenup If You Are Not Wealthy?
We hear a lot about celebrities and the super-rich having prenuptial agreements in place, but even if you do not have extensive assets, a prenuptial agreement can still be a good idea.
Say you unexpectedly quit your job during your marriage to raise your children. A prenup can specify what kind of support you might be entitled to should a divorce happen. Or, say you supported your spouse while they went to college. You helped pay for tuition and student loans, which means there may be some repayment after a divorce.
Rather than fight over the details in divorce court—costing you even more money in legal fees—you can state terms ahead of time in a prenuptial agreement.
What Is Looked at for a Prenuptial Agreement?
- Prior to the marriage, you should make a list of all assets owned and debts owed. Both spouses need to make full disclosure. It needs to be determined how these will be handled during the marriage and in the event of a divorce.
- A determination needs to be made as to how marital property, which are the assets and debts that will be accumulated as a couple, will be handled in the event of a divorce.
- Many times couples have different styles for managing money, so the management of assets and income should be determined ahead of time.
- Both parties need to be upfront about their credit scores, whether they have old debt, and how they feel about accumulating new debt.
- Views on non-monetary contributions, such as raising the children or managing the household, should be addressed upfront.
- Maintenance, or alimony, is a reality often faced by one spouse in the case of divorce. This should be discussed ahead of time.
Are Schaumburg Prenups Expensive?
Most family law attorneys will charge by the hour for creating a prenuptial agreement, which means the costs will vary depending on each situation. However, the cost of drafting most prenuptial agreements in Schaumburg is typically much cheaper than in divorce court.