Prenuptial agreements, often referred to as prenups, are legal documents that outline how a couple’s assets will be divided in the event of a divorce. Despite their benefits, prenups are often misunderstood. Many myths surround them, leading couples to overlook this useful planning tool. In this blog, Borakove Osman LLC debunks eight common myths about prenups and explains why they might be worth considering to those in Dane County.
Myth 1: Prenups Are Only for the Wealthy
Fact: While prenups are often associated with celebrities or wealthy individuals, they’re not just for those with substantial assets. Prenups can benefit any couple, regardless of income level. They can protect both parties’ financial interests, including savings, investments, and property, and ensure that each person’s financial situation is considered fairly if the marriage ends.
Myth 2: Signing a Prenup Means You’re Planning for Divorce
Fact: Many people view prenups as a pessimistic start to a marriage, but that’s not the case. A prenup is simply a way to plan for the future and protect both parties. Just as you might purchase insurance even though you don’t plan to use it, a prenup is there to provide security in case things don’t go as planned. It can actually foster open communication about finances, which can strengthen the relationship.
Myth 3: Prenups Are Only for People with Significant Assets
Fact: Prenups aren’t just about protecting wealth. They can also outline how to handle debt, future earnings, and other financial matters. For example, if one partner has student loans or other liabilities, a prenup can prevent the other spouse from becoming responsible for those debts. Additionally, it can address spousal support and division of property acquired during the marriage.
Myth 4: Prenups Are Unromantic and Damage Trust
Fact: While discussing a prenup might not seem like the most romantic topic, it can actually improve trust and communication between partners. A prenup encourages couples to have honest conversations about finances, expectations, and goals for the future. It can provide peace of mind, knowing that both parties have clear agreements about their financial responsibilities.
Myth 5: A Prenup Only Benefits the Wealthier Spouse
Fact: A well-drafted prenup should be fair to both parties, not just one. Both partners have the opportunity to protect their financial interests. If the prenup is one-sided or unfair, it can be challenged in court. The goal is to ensure that both parties feel secure, and the agreement should reflect their unique circumstances.
Myth 6: Prenups Can Include Any Terms the Couple Wants
Fact: While prenups offer flexibility in financial planning, they can’t include just anything. Some terms, like those related to child custody or child support, are unenforceable. Courts prioritize the best interests of the child, regardless of what the prenup states. Additionally, if the agreement includes terms that are illegal or overly unfair, it could be invalidated by a court.
Myth 7: You Can Sign a Prenup Right Before the Wedding
Fact: While it’s possible to sign a prenup shortly before the wedding, it’s not ideal. Both parties need time to carefully review and consider the terms, and rushing the process could lead to issues later. Courts may invalidate a prenup if it was signed under duress or without adequate time for review. It’s best to start the process early, giving both partners enough time to consult legal counsel and negotiate terms.
Myth 8: Prenups Aren’t Necessary if You Live in a Community Property State
Fact: Even if you live in a community property state, where assets acquired during the marriage are typically divided 50/50 in a divorce, a prenup can still be beneficial. A prenup allows couples to tailor the division of assets to their specific situation rather than relying on default state laws. It can also address assets acquired before the marriage, inheritance, and business interests that might not be covered by community property rules.
Embracing Prenups for a Stronger Partnership
Prenuptial agreements are valuable tools that can protect both partners in a marriage. While many myths surround prenups, they are ultimately about planning for the future, ensuring financial fairness, and fostering open communication. Whether you have significant assets or are simply looking to outline how you and your partner will handle financial matters, a prenup can provide peace of mind.
If you’re considering a prenup in Wisconsin, consulting with an experienced attorney is key. At Borakove Osman LLC, we have extensive experience creating fair and legally sound prenuptial agreements tailored to each couple’s unique needs. Contact us today to learn more about how a prenup could benefit your marriage.