9 Pro’s For Prenups
Need Protection?
When news of Tiger Woods renegotiating his and Elin’s prenuptial agreement to compensate her for sticking with him through his sex addiction ordeal broke, a lot of us were not surprised. Back in December it was reported that Woods offered to pay his wife $55 million if she stuck it out with hm for two more years.
While pay off for getting it in writing may not be as high for us ordinary girls, signing a prenuptial agreement can be pretty beneficial.
“There’s this misunderstanding that prenups are never good for the woman,” says Arlene Dubin, a New York Marital Lawyer and author of “Prenups for Lovers”. “The reality is both the man and the woman will have a lawyer who will look out for their interests.”
And protecting your interests is what it’s all about. Here are our nine reasons why a prenup is a good idea.
1. You Want to Start Off Strong
A prenup requires the two people entering into the agreement to disclose all of their financial identities. “What I find is that people come out of that practice feeling better and feeling like they know [their partners] better,” Emily Doskow, a Berkely, Calif. family attorney and editor of “Prenuptial Agreements: How to Write a Fair and Lasting Contract” says. Being able to discuss your financial history and future plans openly with your partner can ensure that your marriage has a firm foundation built on honesty and trust. “It starts everything on the right foot,” Dubin adds.
2. You’re the Boss
If the women-out-earning-men trend continues, it’s very possible that you’ll be the one bringing home the bacon in your marriage. Should your union dissolve, you don’t want all the assets you’ve acquired to go right along with it.
3. You’re a Business Owner
Your ex-husband could become part owner of your business after you split. “In most states, the value of a business is considered marital property. Your spouse could have a claim for up to 50 percent of the business’ worth. How are you going to get the money to pay for it?” Dubin asks. “That causes a lot of business owners to liquidate.”
Your spouse could stake claim to half of your intellectual property too, Dubin says. If you write a screenplay or a book or record an album, “that’s an intangible asset which has value when you’re looking at the marital pot.”
4. People Change
Most people don’t enter into marriages expecting them to end, but. if the divorce rate is any indication, stuff happens. As humans, we are always evolving. Sadly, sometimes our spouses don’t evolve with us and we need to move on. We might not want to leave all our money behind when we go. …We’re just saying.
5. You’ve Been Down This Road Before
Things get tricky on the second go around. If you have kids from a previous marriage or relationship, a prenuptial agreement will ensure that, should you pass away, every one in your family receives their share of your assets.
“It’s very common for people going into a second marriage to get a prenuptial agreement,” Doskow says. “A prenup can really avoid conflict. It can set what I am leaving to you my spouse and what I am leaving to my children.”
Also, Dubin notes if a woman re-marries she could be in jeopardy of losing her spousal support. She may want to create a clause in her prenuptial agreement that makes up for the loss.
6. You’re Not a Working Girl
If you plan on changing your career to homemaker/stay-at-home mom, you need to make sure that the both you and your husband value your non-monetary contributions to the marriage as much as you do his financial donations. “If a woman is making sacrifices for the marriage, she wants to make sure that if anything happens she’ll be alright,” Dubin says. “[A couple] should put the principle of sharing regardless of what type of contribution up front.”
7. He’s In Too Deep
When you get married, you don’t just inherit his family. You also inherit his debt and even if you split up, that debt sticks around. You can ensure that you’re not responsible for his obligations with a prenuptial agreement.
“One good way is to identify the premarital debt so that that will be separate,” Doskow says. “The other thing that you can do is say that you don’t want to have any communal property.”
8. It’s the Cheaper Alternative
If your relationships gets tapped out, would you rather pay tons of legal fees to protect your interest, or would you rather already have them protected in a legally binding agreement that you and your husband signed before getting married?
“Getting a prenup is expensive but it’s a lot cheaper than going through a litigated divorce where lawyers spend a huge numbers of hours at a huge rate fighting about everything,” Doskow points out.
9. Security=Less Stress
Knowing that you’re protected should anything happen, relieves stress and arguments over money, which is one of the main reasons why couple’s split. If you’re fighting about money less, you may have more of a chance at making it.
“If somebody is the lower earner and they are worried about their future, having a prenup that says if we divorce, you get a lump sum, at least that person knows [he or she] won’t have to litigate for support and that there’s something there for [him or her],” Doskow explains. “It can create a greater sense of security that can lead to less stress over money.”
