Do I Need a Prenup? A Must-Read for Couples
You need a prenup because defining a shared vision in a legal document helps you and your partner build a strong foundation for your relationship. Without a prenup, you and your partner have less control, which can lead to confusion or disputes. Focus on building a strong future with your partner by creating a prenup and using Neptune to get started. We offer personalized guidance and a qualified family lawyer to craft and execute a prenup that benefits both of you.
Key takeaways
- You'll need to fully disclose all assets, liabilities, income, and financial information to your partner before creating a prenuptial agreement, ensuring complete transparency in the process.
- A prenuptial agreement costs between $3,000 to more than $20,000 depending on complexity, location, and the lawyers you hire, with higher fees often charged for couples with more assets.
- You should hire two separate lawyers when creating a prenup to avoid conflicts of interest, as courts may invalidate agreements where only one attorney was involved.
- Your prenup can include a sunset clause that sets an expiration date, such as your 10th or 15th wedding anniversary, giving you flexibility for your future partnership.
- If you own a business, have children from a previous relationship, or plan to have children where one partner may sacrifice career advancement, a prenuptial agreement provides essential clarity and financial planning.
- The agreement must be voluntary and free from coercion to remain legally binding, and both partners can collaborate on terms that work for your unique financial goals and circumstances.
How Does a Prenup Work?
Couples planning a future together can create this legally binding agreement before tying the knot to outline their financial responsibilities and rights. The document, designed to help partners plan a sound financial future, covers assets, income, and liabilities. It outlines and specifies:
- Property division
- Spousal support
- Property rights and obligations
- Life insurance benefits
- Business ownership and management
- Inheritances
In addition, a partner who wishes not to burden the other with debt obligations can opt to assume sole responsibility for the debt to shield their significant other from financial liability.
Before creating the prenuptial agreement, both partners must disclose all their assets, liabilities, income, and other financial information. They can collaborate on the terms of the prenup with the help of an attorney. Once it's finalized, partners can sign it and have it notarized so it becomes legally binding. It's crucial to note that the prenup must be voluntary, and no couple should be forced or coerced into signing the document. Otherwise, the court can render the agreement invalid and unenforceable.
After the wedding, the prenuptial agreement remains in effect until amended or revoked by the couple. Partners can also include a sunset clause that sets an expiration date for their prenup, such as their 10th or 15th wedding anniversary. By having a valid prenup in place, couples can avoid time-consuming disputes in the future. It also paves the way for a stronger financial future, where both partners' financial objectives are considered.
Who Needs a Prenup?
Think of prenups as a tool for financial planning for couples. When drafting the document, work with your partner to find a solution that works for both of you. Some of the most common reasons for a prenup include:
- Having Your Own Business: A prenup helps you maintain continuity and control when you own a business. This is especially helpful when you have business partners. The prenuptial agreement can offer peace of mind and clarify management and ownership roles, helping to support business growth and expansion.
- Having Children from a Previous Relationship: Executing a prenuptial agreement provides certainty. By outlining your wishes, the prenuptial agreement offers clarity for your children and new partner and ensures everyone's interests and needs are considered.
- Planning to Have Children: Raising children may require one of you to make career sacrifices, significantly impacting earning potential. Discussing spousal support in the prenuptial agreement demonstrates a responsible and loving decision. By providing for each other's financial needs, partners can show their care and commitment to one another, strengthening their relationship.
How Much Does a Prenup Cost?
When considering a prenup, it's best practice to hire two lawyers to avoid conflicts of interest. The court may invalidate the prenup when only one family attorney is involved.
Regarding fees, a prenup can cost between $3,000 to more than $20,000, depending on complexity, the lawyers you hire, and your location. Note that some attorneys may charge higher fees if they think clients have more assets.
Use Neptune to stay well-informed about prenups before any lawyer is involved. We can also match you with a lawyer who charges flat and transparent rates.
Drafting Your Prenup
While writing your own prenup may appear more cost-effective, it's essential to consider the potential limitations. Basic templates are readily available, but most fail to account for each partner's unique circumstances, long-term goals, and financial objectives, which are essential in building a strong financial future.
Hiring a family attorney to help you effectively navigate the difficult prenup process is highly recommended. Working with a lawyer also ensures all your questions are addressed and the prenup is tailored to your needs. Also, a lawyer can ensure that the prenuptial agreement is fair, reasonable, and complies with state laws.
Hiring a lawyer specializing in prenuptial agreements or family law provides valuable guidance and can help you create an enforceable agreement that addresses your specific circumstances. An attorney can also facilitate honest and open communication with your soon-to-be spouse, ensuring both of you are on the same page.
Most importantly, lawyers can draft a comprehensive document that considers both of your interests, providing peace of mind.
Initiating the Prenup Conversation
When starting the prenup conversation with your partner, emphasize how it provides you both with clarity and a well-thought-out direction for your financial future together. If either of you has any doubts at all, take the time together to learn all you can. You can even take this quiz to determine how well you know your partner before diving into the conversation.
Securing your future by creating a prenuptial agreement can be a straightforward process. It's a chance for you and your future spouse to communicate honestly and openly about your financial goals and values. To make this journey smoother, Neptune can guide and connect you to qualified, experienced, vetted family law attorneys who will consider your unique needs.
Whether you're ready to take the next step or just exploring your options, chat with Neptune today. We'll match you with a skilled lawyer if you opt to go forward. By working together, you and your partner can create a solid foundation supporting your current and future goals, providing peace of mind knowing you're ready for all life's challenges and adventures.
Frequently asked questions
How much does a prenup cost?
A prenup can cost between $3,000 to more than $20,000, depending on complexity, the lawyers you hire, and your location. It's best practice to hire two lawyers to avoid conflicts of interest, as the court may invalidate the prenup when only one family attorney is involved. Some attorneys may charge higher fees if they think clients have more assets.
What does a prenup cover?
A prenup covers property division, spousal support, property rights and obligations, life insurance benefits, business ownership and management, and inheritances. The agreement also allows partners to outline their financial responsibilities and rights, including how assets, income, and liabilities will be handled. One partner can also assume sole responsibility for debt to shield their significant other from financial liability.
Who needs a prenup?
Prenups are helpful for couples with their own business to maintain continuity and control, especially when they have business partners. They're also beneficial for those with children from a previous relationship to provide clarity for everyone involved, and for couples planning to have children where one partner may make career sacrifices that impact earning potential.
How does a prenup work?
Both partners must first disclose all their assets, liabilities, income, and financial information, then collaborate on the terms with the help of an attorney. Once finalized, partners sign and have it notarized to make it legally binding. The prenup remains in effect after the wedding until amended or revoked, though couples can include a sunset clause setting an expiration date.
Can I write my own prenup?
While basic templates are available, most fail to account for each partner's unique circumstances, long-term goals, and financial objectives. Hiring a family attorney is highly recommended to ensure the prenup is fair, reasonable, complies with state laws, and addresses your specific circumstances. A lawyer can also facilitate honest communication between partners and create a comprehensive, enforceable agreement.