Our founder, Kristyn Carmichael, was recently interviewed regarding the reasons to get a prenuptial agreement (prenup), even if you aren't rich. See the full article HERE and a segment of her interview below:
Why would someone who isn't rich need a prenuptial or premarital agreement?
Prenups are one of my favorite topics, as many people are either fearful of them, or find them "unromantic" and unnecessary. In reality, a prenuptial (prenup) agreement can be beneficial to everyone! So why would you need a prenup if you aren't rich?
1. Protect future income earning capacity - While you may not be rich yet, that doesn't mean you don't have the potential to have wealth in the future. Imagine you are a doctor-to-be in residence or in med school. While you don't really have income now, you could protect your income in the future.
2. Protect your children - Sometimes, when a couple marries, they may already have their own children outside of this marriage. Even if they have not amassed wealth, a prenup protects their children's right to the assets they have.
3. Prepares you for marriage. What many people don't realize is the conversations we have around a prenup (premarital agreement) are important conversations for a successful marriage. Finances is one of the largest reasons for divorce. If we can communicate about them now, setting expectations and having the challenging conversations before marriage, it can make the marriage stronger.
4. Insurance. I like to explain a prenup as insurance - you have insurance for your car but don't plan on getting in a wreck, you have insurance for your home but don't plan on it catch fire, so what about insurance for your marriage? Even if you aren't "rich", you are likely coming into the marriage with something you value and want to protect.
5. Not wanting your relationship to be dictated by state law. The reality is that everyone has a "prenup" also known as the state law in which they get a divorce. The state has dictated how you are going to separate your assets and what is fair if you divorce. A prenup gives you the opportunity to take back control and determine what you believe is fair rather than what the state believes in fair.
6. Can lower your chance of divorce. While there are not a lot of studies that have been completed, one study found that creating a collaborative prenuptial agreement in mediation lowers your chance of divorce. This is an important distinction. Most people complete a prenup where one spouse has their attorney draft it, they hand it to the other spouse for review, and then it is signed. This process is not shown to increase or decrease divorce rate. But if a couples completes the prenuptial agreement together in a mutual process, such as mediation, divorce rates lower.
When should a prenup be completed?
As far in advance of the marriage date as possible. The closer to a marriage date, the more likely that it is rushed or could be coerced, making it potentially invalid.
How do you get a prenup?
We recommend to get the most benefit out of the prenuptial agreement and prenup (premarital) creation process, you use a mediator. A mediator is a third party neutral that helps you and your spouse to be work through your agreements and find mutually beneficial solutions.
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