Episode Summary:
In this episode, we talk about all things prenup related, and we bring on a family law attorney to give you an official legal perspective on prenuptial agreements. We explain what a prenup is, why we think they are good, and how to create one properly. We believe everyone should thoughtfully consider creating a prenup when they are getting married; it’s an investment in your marriage and a kind thing to do for your future partner.
Episode Notes:
We introduce Alexa Kwartin, a family law attorney in Atlanta, GA, who gives her perspective and advice on prenuptial agreements, aka prenups. We then dig into a detailed discussion on prenups with Alexa.
What is a prenup?
- A prenuptial agreement, aka prenup for short, is a legal document that two people create before marriage. It typically lists all assets and debts each person has entering into the marriage and specifies what should happen to those items if the marriage were to end. You can also have a similar document, called a postnuptial or postmarital agreement, that is entered into during the marriage.
- A prenup can help you pass separate property to children from prior marriages, clarify financial rights and responsibilities during your marriage, avoid arguments in the case of a divorce because it would specifically lay out things like alimony, and protect spouses from each other’s debts.
- We’re perhaps stating the obvious here, but both parties must agree to a prenup; you can’t have one person write up a prenup on their own.
- Each state has its own laws regarding what can and can’t be included in a prenup, which is one of many reasons why we recommend consulting with an attorney on this process.
Why prenups are a good thing, and why you shouldn’t be afraid of them:
- It’s not just for the wealthy and super-rich. Couples of more modest means, or even deep in debt, are increasingly seeing the value of prenups.
- Prenups have a bad rap, and we don’t think it’s fair.
- If you don’t have a prenup, your state’s laws will dictate what happens to your property in the case of a divorce or death. Each state’s laws vary, but they will dictate what happens to property acquired during your marriage and sometimes even property you own coming into the marriage. Marrying someone is a contract between the couple, and with that contract comes specific rights regarding what happens to your marital assets. Your spouse could take on $50K in debt without telling you, and then you get divorced, and half that debt is your accountability in many states.
- Creating a prenup allows you to decide on these things when you’re in love and in a kind and compassionate mindset. That seems fair for everyone involved. So many things can go wrong in a marriage, things you could never predict or imagine; prepare yourselves. Hope for the best, but plan for the unexpected and worst. It’s the best wedding gift you can give your love!
- It’s like free premarital counseling – you have to have financial discussions.
- Is money your concern? A prenup can save you money in the end. Best case, you have a happy marriage and never need or use the prenup. Yeah, we hope that’s how it works out for most people. And you’re willing to pay crazy amounts for rings and weddings, and none of that protects you. Worst case, you get divorced, and it’s a smoother and less expensive divorce because you already agreed to these things in advance.
- You need to make sure your prenup is done properly and on the “up and up,” or it could be judged as unfair during divorce proceedings. For example, both parties need to be represented by a lawyer, or there’s a high likelihood a judge would question its validity.
Prenup advice and tips from a family law lawyer:
- Who needs a prenup?
- Should you adjust a prenup over time if big things financially change in your marriage?
- Can you DIY a prenup, or do you need to hire a lawyer?
- Are prenups enforceable by a judge in the case of a divorce?
- What can a prenup do, and what can it not do?
- Are there any unique considerations for same-sex couples?
- What is a postnup, and when might that be needed vs. a prenup?
Top 3 takeaways:
- Everyone should at least thoughtfully consider if a prenup is right for them.
- Don’t let prenup myths and misconceptions be the reason you don’t get one.
- Consult with an attorney if you’re considering getting a prenup; it’s worth the investment in marriage and your financial future.
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