4 Common Misconceptions About Prenuptial Agreements
If you're considering marriage or were recently engaged, chances are the majority of your free time is spent devising a seating plan or choosing a wedding theme. However, during these discussions with your future spouse, there is another topic might be raised: prenuptial agreements.
For many, the idea of a prenuptial agreement leaves a bad taste in their mouth, and they assume it will inevitably lead to divorce. The idea that prenuptial agreements increase a couple's chances of divorce is one of the many pervasive myths associated with this potentially useful legal tool. Here are three of the most common misconceptions associated with prenuptial agreements.
Only Wealthy People Need Prenuptial Agreements
One of the most common myths associated with prenuptial agreements is the idea that they are only sought after and useful for the extremely wealthy. However, even if you are struggling college students or are entering into your second marriage and have a modest income, you could still benefit from a prenuptial agreement.
This is because prenuptial agreements are not just about the division of property and money. In addition to determining who is awarded certain premarital assets, an agreement will also cover several other critical points, including:
- The division of debt. In addition to determining the division of assets, a prenuptial agreement can also determine the division of debt, including debt that was incurred both before and during the marriage.
- Protect children from a previous marriage. If one or both spouses have children from a previous marriage, an agreement can ensure that their rights to inherit or receive assets is protected.
- Protect a birth family's assets. If either spouse has a valuable heirloom, an inheritance or another asset they want to remain with their birth family, the property or money can be protected by a prenuptial agreement.
- Determine tax filing status. The tax filing status of each spouse can be determined and upheld in a prenuptial agreement.
These are only a handful of the ways a prenuptial agreement can protect both spouses, both during the marriage and after a divorce.
Prenuptial Agreements Will Lead to Marital Distrust
Your friend or family member may discourage you and your future spouse from creating a prenuptial agreement because of the misguided belief it will lead to an unhappy marriage. On the contrary, in many cases, signing a prenuptial agreement can help couples understand their finances and create an open dialogue about their marriage, assets and future financial issues.
While drafting a prenuptial agreement, both future spouses will learn more about one another's views on money, divorce and financial planning. This agreement can help create an open and honest discussion about finances and divorce, which in turn will benefit both spouses throughout their marriage.
Prenuptial Agreements Are Expensive
Finally, if you're considering a prenuptial agreement, the one thing that might be keeping you from creating this useful document is the myth that the process is expensive. In actuality, the cost of a prenuptial agreement is very modest, especially when compared to a contested divorce.
If you choose to have an attorney assist you and your future spouse with drafting a prenuptial agreement, you can expect to spend anywhere from less than $1500 to $3500. If this seems expensive, keep in mind that the average contested divorce can cost both spouses anywhere from $15,000 to $30,000, or more.
From the idea that prenuptial agreements are only necessary for the rich to the fear that it will cost a small fortune to secure this protection, there are several pervasive misconceptions about prenuptial agreements. If you have any further questions or want to draft a prenuptial agreement, don't hesitate to contact the professionals at The Law Office of Joe R. "Jay" Johnson II.
