A prenuptial agreement, more commonly called a prenup, is a legally viable deal that two people can enter into before they marry. It’s like a backup for unforeseen events. Couples get prenups made to cover potential issues like child custody, finances, health problems, property and any other sticky situation that could arise. This can be extremely helpful to both parties in the event that something goes wrong. However, many people view prenups with disdain and won’t even consider entering into them due to the bad light they’re often cast in. Here are five mistaken facts about prenups.
1. They’re For Rich People
They’re not just for helping rich people keep their fortunes in a divorce. Prenuptial agreements are for everyone, regardless of their financial status. When you consider the country’s 50 percent divorce rate, the costs associated with divorce and couples’ increasing financial independence, a prenup makes sense. It determines early on how money will be divided and managed if the marriage ends.
2. Prenups Are For Failed Relationships
Many people believe that prenups are only good if a relationship fails. Although they’re helpful in these cases, that’s not all they’re for. They can also help you keep your estate in order. Without such an agreement, your husband or wife can easily interfere in your real estate matters. They’re particularly handy if you have any heirlooms or valuable antiques that you want kept in the family.
3. They’re Not Recognized In Court
While courts do sometimes render a prenuptial agreement invalid, this isn’t normally the case. When a prenup is properly planned out and written up by a qualified attorney, and both partners agree to it, the vast majority of courts will uphold it.
4. Prenups Are For Men
Prenups have a bad reputation as tools used by men to cheat their wives out of any financial and marital rights. While this has been done in the past, these agreements are no longer upheld in court. Besides, prenups can be useful to women, too, by providing an ideal way to lay out what both partners expect from each other. Say a woman agrees in her prenup to stay home and care for a family. In return, her husband agrees to support her financially while she’s not working.
5. They’re Costly
A prenuptial agreement may seem pricey, but when you consider how much a divorce can cost, the price tag suddenly isn’t so high after all. Consider it a form of insurance. You pay for it once and hope that you’ll never need it. However, on the off chance that something does happen, it can protect you from financial ruin.