Understanding Prenups & Postnups
Prenuptial agreements get a bad rap. People are afraid of prenups and postnups, because, for some reason, society has conflated these agreements with not loving your partner. If you sign a prenup, it means your marriage is doomed, right? Wrong. Signing a prenup is simply spelling out the terms of your partnership.
Why consider a prenup?
A prenup provides a framework for financial decisions and asset distribution. Take it from someone who has been through a divorce, you want to have one of these as a safeguard in case the bottom drops out. Discussing finances early on can actually strengthen your relationship– and this is the best time to negotiate an equitable split because you’re in love. If you can’t equitably divide assets while you’re googly-eyed in love, imagine how difficult it will be in a divorce proceeding.
Common Misconceptions:
“It means you don’t love me”: This is a myth. A prenup shows care and consideration for your and your partner’s future. It allows both parties to feel secure.
“You don’t want me to have anything.”: Prenups are about fairness. They essentially lay out the terms of your partnership, with both parties’ interests in mind.
Considerations for Non-Working Spouses
If one spouse has taken on the responsibility of childcare and home maintenance and is not fully in the workforce, this can significantly impact their financial situation post-divorce. Historically, this has primarily affected women, but more men are also taking on these roles. If this sounds like your relationship, your prenup might include provisions for spousal support or division of assets to recognize those non-monetary contributions made during marriage. And if your relationship falls along these lines, do not go without a prenup! Seriously.
Understanding Postnups:
Postnuptial agreements are similar to prenups but are created after marriage. They can be useful when circumstances in the partnership change, like when one person receives an inheritance. If you inherit assets but want your spouse to benefit in the case of your passing, a postnup will protect those wishes.
One famous example of a negotiated postnup is Melania Trump. She renegotiated the terms of her and Donald’s partnership ahead of the second presidential term. Wherever your political allegiance may lie, it’s nice to see women advocating for themselves within their relationships.
The Bottom Line
Prenups and postnups are tools for you to build a solid foundation in your marriage. They foster open communication and set clear expectations of the terms of your partnership. Don’t be afraid of these agreements – embrace them.
If you have questions about how to draft a solid prenup or postnup, let me know here.