Prenup has been gaining immense popularity of late, but does it justify the ‘popular’ tag for you? Let us find out today.
Everyone will agree to the fact that marriage is an important decision to make. We need to choose the right partner and also take care of the sundries before jumping on the wagon wheel.
The definition of marriage was different for our ancestors. Marriage today has a different perspective, and the digital age has brought about a change in which we understand marriage.
The bond between human beings have become weaker and no longer depends on values as much as it did in the yesteryears. Getting prenups is not only about safeguarding your tangible property.
Are you one of those thinking about getting a prenup? This article will help you decide if you should get one or not.
Introduction to Prenups
The idea of spending the rest of your life with the chosen one is excellent. But there are several factors which we may want to cater before diving into the water. Marriage is a big decision and has the potential to re-shape your future. With the tremendous growth in divorce rates of late, it is better to play safe.
A prenup or a prenuptial agreement is a contract signed by two people who are going to get married to each other. It is also known as an ante-nuptial agreement or a pre-marital agreement.
The primary purpose of a prenuptial agreement is ascertaining asset distribution in case a couple chooses to divorce. It also covers other issues related to the couple.
A prenup is excellent if there exists an income or net worth imbalance between both the parties in a marriage. When Justin Beiber and Hailey Baldwin got hitched, Justin had an estimated net worth of $265 million whereas Baldwin stood at $2 million. Prenuptial agreements are requisite in such scenarios.
Why Is everyone getting it?
The youth today prefer getting married in their later 20s or early 30s, which is much later than what the earlier generations did. And it’s not just late, the rate of divorce and grown exponentially and it’s not a secret.
As per a survey from The American Academy of Matrimonial Lawyers (AAML), only 2% of the lawyers reported a decrease in individuals opting for prenups. On the other hand, 51% of lawyers reported a growth in the number of individuals preferring a prenuptial agreement.
Here are five primary reasons why everyone is getting it –
More often than not, there exists income discrepancy amongst the two parties in a marriage. You need an agreement to ensure that your interests are protected and no not dilute after marriage.
As is the case with income, the amount of debt can also vary in a marriage. Even after marriage, if your better half acquires excessive debt, you may want to opt-out of it during the divorce.
Avoiding Conflict during Divorce
Parting can be very conflicting and may end up looking ugly if not handled properly. Getting a prenup ensures that the terms and conditions are pre-decided, and there are hardly any loose ends. The agreement can ensure a smooth flow of proceedings without any significant roadblock.
Verbal Plans don’t always Work as discussed
You may have verbal talks about how you want your divorce to be, and your other half may agree to it. Without any tangible evidence, it may not end how you both had approved it to terminate. Having the terms documented and agreed to is quintessential for the safety of both the parties’ assets and interests.
A prenuptial agreement helps in deciding what the children will get. There are chances that one of the parties in a marriage may not be willing to sacrifice his/her part for their offspring. It can be a significant setback to the child’s future. Being a doting parent, you would not want that to happen.
Five Reasons to Avoid Prenups
Every coin has two sides. Likewise, every decision in life comes with its set of goods and the bads. Here are the top five reasons why you should avoid a prenup-
The timing can be WRONG
Prenups gather steam into before marriage, and it can be a deal-breaker for some. Everyone who is a part of the wedding in a pious and joyous state and these agreements don’t add to it. They are the opposite, which indicates that its timing can be incredibly wrong. You can go for a post-nup instead, which is an agreement after marriage.
Thinking of the Worst before the Best may Give Wrong Signals to your Better Half
Discussing a prenup and giving life to it before alliance may not send positive vibes to the other half. It may act as an instigator, and the other person may not behave normally, or there are chances of him/her opting out of marriage.
Prenuptial Agreement stands void if the Court so wants
You can get into an alliance with a prenup and think that you are safe in case of divorce. The truth of the matter is, the Court can declare prenups void during court proceedings. You will have to follow the judgments passed by the Court, and if you choose otherwise, you may end up paying a massive penalty. More often than not, alimony bears the brunt from the terms in the agreement.
Child Custody/Support is at the discretion of the Court
Your contract may contain specific clauses regarding child custody and child support, but these will have no impact on the decision made by the Court. They can ignore what you both have decided and pass a judgment based on the financial condition of both the individuals.
No Place for Personal Preference
In most of the states, there are state laws which dictate the terms of prenuptial agreements. You don’t get the liberty to choose what to add and what to exclude. You can neither wish to have a chef via this agreement nor can you decide the destination for your holidays. Most of the terms are those who will have a significant impact on finance, and even if you choose some absurd clauses, they are not enforceable in the eyes of the law.
Do you need a Prenup?
Prenups offer many benefits, but will you benefit from it? Or should you get one? You should converse with your partner before deciding to get one for yourself. Before everything, you must go through a checklist to determine if it is even worth the time or not. Here are the key reasons to get a prenup –
- Do you both own Real Estate individually?
- Do you both have significant inherited property?
- Does either of you earn a substantial amount per annum and the other one doesn’t?
- Do you want to keep your professional endeavors separate from marriage?
- Do you have family commitments that you must adhere to in future?
If a majority of the answers are in affirmative, it is better to get an agreement signed for your safety and well-being.
What if you don’t get a prenup?
If you don’t get a prenuptial agreement for your marriage, your divorce terms will be as per the State laws. From dividing your property to who will get the custody of the children, everything will depend on the Court’s contention, and you cannot have a say in it.
The fact of the matter is, if you don’t get a prenup, your better half is entitled to receive a part of property, debt and children duties and you cannot blink an eye even if the verdict seems biased to you.
How to get it?
In the times of our ancestors, prenups were considered to be a taboo and so did divorces. But with changing equations, prenuptial contracts have started receiving the nod from society and are being considered as a significant part of marriage.
Most of the countries have legalized prenups and the process to get one for yourself is very easy nowadays. The cost for these agreements is much lower than that of a tedious divorce. Additionally, both parties must have separate lawyers who will examine the terms on behalf of their clients and ascertain the genuineness of the same.
If you think that the cost of a prenup is very high and you need to earn back that amount, head over to our article on 11 Ways to Earn Money Online, and we are sure that it will not disappoint you.