Should You Get A Prenup? The Financial Pros And Cons

Many couples wonder whether they should get a prenup before they get married. The answer, of course, is that it depends. 

Historically, a pre-nup didn’t really mean that much. However, today it is taking on a much more significant role. Couples with pre-nups can expect the courts to honor them. 

So, what are the pros and cons of an arrangement like this? 

Pro: Protects Pre-Marital Assets

These days, a lot of people go into marriages with significant assets behind them. For example, they might own real estate, investments, and retirement accounts. It seems wrong that these should be on the chopping block after a marriage ends, since they were acquired before it began. 

Pro: Debt Protection

At the same time, pre-nups provide debt protection. Sometimes, they can prevent you from being responsible for a spouse’s individual debts. 

This rule depends on where you live of course. If you need more advice, it’s advisable to go to family law solicitors. They can provide guidance and tell you where you stand in relation to the law, depending on the shape you want your pre-nup to take. 

Pro: Increases Financial Clarity

Another benefit of pre-nups is that they increase financial clarity during a divorce. Everyone knows who is going to get what in the event of a separation, saving tens of thousands, or perhaps hundreds of thousands of dollars. 

This clarity is hard to achieve when you’re battling with a spouse over what they owe you. Courts and lawyers will always take their fees, so it can get expensive quickly. 

Con: There Are Upfront Legal Costs

The downside is that there are upfront legal costs. Drafting a solid-pre-nup isn’t free, but it needs to be done right. Therefore, you’ll want to discuss it with a solicitor and see what their fees are for a service like this. 

Con: Can Be Invalidated

Another issue is that some pre-nups can be invalidated. Courts may deem them unfair, undermining the original contract. This only occurs if there’s duress or improper financial disclosure. 

Con: Limited Scope

Then there is the limited scope for pre-nups. While they are good at managing things like your money, they can’t be used to defend against things like child custody and support. Courts will usually impose that, regardless of what the couple agreed before the marriage got underway. That’s because they will attempt to rule in the child’s best interest. 

Con: Sunset Clauses

You might also run into an issue with sunset clauses in a lot of pre-nups. Sometimes, they cease being valid documents if a couple has been married for a certain length of time, perhaps ten years or more. Then, they lose their power and the rules revert to the usual ones governing marriage. 

Con: Creates Distrust

Finally, pre-nups can create an atmosphere of distrust between a couple. It’s often a sign that one party is worried about their finances and that the other will take advantage of them. It may also signal a lack of commitment, which is something that many spouses want to avoid.