Should I Sign a Prenup? 5 Key Considerations
Signing a prenup is a smart decision, though some hesitate, fearing it suggests a lack of trust. In reality, it provides peace of mind and financial clarity while strengthening relationships through open communication. A well-thought-out prenup isn’t about expecting the worst but about creating a clear and secure future together.With Neptune, you can get the financial conversation rolling with your partner while being assigned to attorneys ready to help you create a solid, legally binding foundation for a happy, long-lasting relationship.
Key takeaways
- You must get independent legal advice before signing any prenuptial agreement - using just one attorney for both partners can lead to the agreement being thrown out by judges who view it as potentially coercive or unfair.
- A prenup should cover five key financial areas: current assets and debts, which property stays separate versus marital, business interests, inheritance handling, and who pays for household expenses and taxes.
- Couples with income disparities, blended families, business owners, or partners planning to leave the workforce can especially benefit from the financial clarity and fairness a prenup provides.
- Your prenup cannot dictate personal matters like child-rearing, child support, or custody arrangements - many states also prohibit infidelity clauses or waiving alimony rights.
- Never sign a prenup you disagree with - this agreement should feel fair and comfortable for both partners through open communication and mutual respect throughout the process.
What Is a Prenup?
A prenuptial agreement is a legally binding agreement that a committed couple enters prior to getting married. They detail financial agreements, asset division, and debt management for what each party brings into the relationship and how these topics will be handled throughout it.
Should I Sign a Prenup My Partner Gave Me?
Before you decide to sign a prenup presented to you, you should always seek independent legal advice from an attorney representing your interests. A common mistake couples make when seeking prenups is using a single attorney to draft the clauses.
If the prenup ever needs to be enforced legally, many judges will throw it out if two attorneys weren't involved in its drafting. The party requesting to uphold the prenup will have to prove that the agreement is valid, which can increase the time and resources spent in court.
Using one attorney is problematic because they're ultimately working for the one who hired them. Judges tend to scrutinize these agreements closer because they want to ensure that no coercion occurs and that the prenup doesn't unfairly benefit one party over the other. An attorney for each party is a worthwhile investment to create an ironclad prenup.
If you don't agree with the terms of the prenup, you shouldn't sign it. A prenup should be a mutual agreement that feels fair and comfortable for both partners. If it includes some terms that you just don’t feel comfortable with, it means the conversation with your partner isn’t over. Open and honest communication is key. You both should feel respected and heard throughout the process.
5 Considerations Before Signing a Prenup
Prenups should be treated like any other major, life-changing decision—deliberately and with the utmost attention to detail. This document will set the course for your financial future in your relationship.
While you and your partner discuss what should be included, you have the perfect opportunity to align your interests and beliefs to avoid future surprises. Be sure to consider and discuss key financial details, such as:
- A current snapshot of both partners' current financial status. This should include all debts, income, assets, and investments
- Which premarital assets and liabilities will be considered separate property, and which assets and debts will be considered marital property when obtained during the relationship
- How to handle existing or future business interests
- How inheritances will be treated if they could be seen legally as community property
- What the financial responsibility divide will look like. This includes who will cover household expenses, how taxes will be filed, and how to handle bank accounts and major purchases
Keep in mind that prenups can't be concerned with personal or lifestyle matters, such as how to raise children, and can't dictate child support or custody. Many states also do not allow infidelity clauses or clauses that waive the right to alimony if the relationship fails.
Who Should Sign a Prenup?
Really, anyone can benefit from an ironclad prenup that considers both parties in a relationship. Since they address many responsibilities and expectations that matter as much (or sometimes more) during the relationship rather than in the event of the end of a relationship, they can be a great tool to create financial transparency.
Some people may find a prenup more compelling than others, regardless of the stigma often associated with them.
- Couples where there's a large disparity in income, assets or debt often benefit from the clear financial divide. It helps ensure fairness and safeguards one another from potential financial burdens down the road.
- Couples with children from prior relationships can create terms that clearly outline the division of assets in a way that considers the children's best interests. Prenups can also come into play if one partner passes away, so this is a great way to ensure inheritances remain intact after remarrying.
- Some business owners may find that a prenup protects their financial interest in their business while also shielding their partner from liabilities. They can specify that only the business-owning partner is responsible for business debts and protect the non-business owner's assets.
- If one partner has a tense relationship or estrangement with their family of origin, a prenup can provide a clear way to deny sudden requests for money or financial assistance.
- Partners intending to leave the workforce for homemaking or parenting can gain significant financial advantages with a prenup. Clauses can be added requiring the working partner to provide continuing retirement and financial contributions that acknowledge the invaluable but unpaid labor performed by the stay-at-home partner.
Remember, a well-structured prenup can bring about transparency and mutual understanding, strengthening the foundation of your relationship.
Good Prenups Set Your Relationship Up for Success
Whether you're just considering a prenup for the first time or you're ready to finalize the details with a lawyer, Neptune is here to facilitate the process. Start by taking the prenup quiz online and exploring valuable resources to prepare you and your partner for the next chapter of your lives.
Frequently asked questions
Should I sign a prenup my partner gave me?
You should always seek independent legal advice from an attorney representing your interests before signing any prenup. Never sign a prenup if you don't agree with the terms - it should be a mutual agreement that feels fair and comfortable for both partners. Using separate attorneys is essential because judges often throw out prenups where only one attorney was involved in the drafting process.
What should be included in a prenup agreement?
A prenup should include a current snapshot of both partners' financial status including all debts, income, assets, and investments. It should specify which premarital assets will be separate property versus marital property, how business interests will be handled, how inheritances will be treated, and the financial responsibility divide for household expenses and major purchases.
Who needs a prenup agreement?
Anyone can benefit from a prenup, but they're especially valuable for couples with large disparities in income, assets or debt, business owners, those with children from prior relationships, and partners planning to leave the workforce for homemaking or parenting. Prenups help create financial transparency and can strengthen relationships by addressing responsibilities and expectations.
Can a prenup cover child support and custody?
No, prenups cannot dictate child support or custody arrangements, and they can't address personal or lifestyle matters such as how to raise children. Many states also don't allow infidelity clauses or clauses that waive the right to alimony if the relationship ends.
Why do I need separate lawyers for a prenup?
Each party needs their own attorney because judges often throw out prenups where only one attorney was involved in the drafting. Using one attorney is problematic since they're ultimately working for whoever hired them, and judges scrutinize these agreements to ensure no coercion occurred and that the prenup doesn't unfairly benefit one party over the other.