Increasingly more soon-to-be-married couples are exploring whether to draft and sign a prenuptial agreement. The stigma and misconceptions are increasingly being challenged by the reality that it’s not only wealthy couples who benefit from these contracts and damage your prospects for a long, happy marriage.
While statistically half of all marriages end in divorce, prenuptial agreements have the potential to save couples arguments, anguish and thousands of dollars. It often represents an agreement that is far closer to their wishes than what any family law judge could offer.
What’s more, a good prenuptial agreement can actually be a positive thing in a healthy marriage. Not only do these contracts protect each party from making financial decisions in the future out of feelings of anger or resentment, they also help engaged couples better understand the totality of their economic standing. Drafting prenuptial agreements compels conversations about tricky topics and gets couples on the same page with regard to money matters and life goals – things of key importance in a successful marriage.
We understand that division of assets isn’t a “sexy” conversation. In fact, many couples aren’t motivated to have it because many are entering their first marriage without substantial assets. Yet, it is something to carefully consider, especially if one of you is planning at one point to exit the workforce to raise children. Deciding ahead of time how to divide assets and future earnings can protect stay-at-home spouses against divorce laws that are typically more friendly to dual wage-earners who don’t need long-term alimony.
What Exactly is a Prenuptial Agreement?
A prenuptial agreement, also commonly referred to as a “prenup”, is a written contract between two people who are engaged, stating their rights and responsibilities with regard to premarital and marital assets and debts, and how these should be divided if the marriage ends in death or divorce.
It’s a wise investment because it not only forces couples to talk about their financial situation, it can help them sidestep a potentially costly and contentious divorce if things don’t work out. One study by researchers at Harvard found that while most people assessed the general public’s risk of divorce correctly (50 percent), they were overly optimistic about their own risk of divorce (10 percent).
Things that can be covered by a New Jersey prenuptial agreement include:
There are, however, several things a prenuptial agreement cannot cover. Some of those include:
Prenuptial agreements generally range anywhere from $1,500 to $10,000, but could be more or less depending on the complexity of the estates involved. Consider, however, that the average divorce lawyer in New Jersey may charge between $295 and $380 hourly, which could mean a bill well over $10,000 – for each of you – if you are trying to settle complex issues upon divorce. The more you have worked out ahead of time, the less you’ll have to pay someone else to help you sort out later. A well-drafted agreement can be well worth its weight in gold.
Who Should Have a Prenuptial Agreement
There is still the lingering notion that only uber-wealthy couples need a prenuptial agreement. Of course, high asset couples should have one, but they aren’t the only ones who could benefit from a New Jersey prenuptial agreement.
Others include:
If you have questions about drafting a New Jersey prenuptial agreement, we can help.
Contact our New Jersey prenuptial agreement attorneys today at (732) 377-3367 to schedule an appointment.
