Why a Prenuptial Agreement Is Worth the Cost

 Posted on July 16, 2019 in Premarital Agreement

There is a misconception amongst some newlyweds that a prenuptial agreement is not necessary unless you are rich. It is true that a prenuptial agreement is helpful when spouses have substantial assets. Those with fewer assets may believe that creating a prenuptial agreement is unnecessary or not worth the cost. However, you should not discount the benefits of having a prenuptial agreement, even if your premarital assets seem meager. In the event of a divorce, you may be thankful that you took the time to prepare one.

Need

People think of prenuptial agreements as a tool of the rich because they are most likely to hear about prenups in the media when celebrities get divorced. Owning valuable assets is only one reason to create a prenuptial agreement. Others include:

• Identifying premarital assets;
• Determining how to divide assets that may grow in value; and
• Settling potential property disputes while you and your spouse have an amicable relationship.

It is common sense to want to know all of a person’s assets before you marry them. You should be suspicious if they refuse to divulge them. Some assets, such as a business, are likely to become more valuable in the future. If you created and are running the business, you may want to protect your ownership while also acknowledging that your spouse would deserve compensation for the value of your business. You could wait until a divorce to settle issues such as this, but your spouse may be less open to compromise during the divorce.

Cost

People who are soon to be married may have difficulty justifying the expense of creating a prenuptial agreement. Their finances may be tight, and the optimism at the beginning of marriage makes it seem like they may never use the agreement. Ask someone who used a prenuptial agreement during a divorce, and they will likely say it was worth the initial expense. It can be far more costly to pay for drawn-out divorce negotiations than to create an agreement that sets the framework of your negotiations. Do not assume that the cost to create your agreement will be the same as what someone else paid. Your agreement may take less time to create if you have fewer assets or if those assets are not complex.

Contact a Kane County Family Law Attorney

Creating a prenuptial agreement may be more useful than you realize, but you should still carefully consider your options before you decide. A St. Charles, Illinois, family law lawyer at Goostree Law Group can discuss the practicalities of the agreement. Schedule a free consultation by calling 630-584-4800.

Source:
https://www.forbes.com/sites/robertpagliarini/2019/06/27/a-prenup-for-the-rest-of-us-rethinking-the-premarital-agreement/#13cebd55636f