NEW YORK (AP) — For those who closely follow celebrity news, Jennifer Lopez’s decision to file for divorce from Ben Affleck might not have come as a shock. What caught many off guard was that her divorce petition didn’t mention a prenuptial agreement.
A prenuptial agreement, or prenup, is a legal contract that couples sign before getting married. It details how they will split their assets if they decide to divorce. These agreements are common among wealthy individuals and celebrities. However, divorce attorney Raiford Dalton Palmer suggests that even those without significant wealth should consider having one.
“Prenups aren’t just for the affluent,” Palmer, managing shareholder at STJ Divorce Law, explained. “They can be essential for individuals with modest means, as every attorney fee takes away from resources you might otherwise spend on yourself or your children.”
If you’re planning to tie the knot soon, here are some key points about prenuptial agreements:
Start the prenup discussion early
Timing is crucial when broaching the subject of a prenup with your partner. Family law attorney Linda J. Ravdin advises that you should discuss it sooner rather than later, ideally not waiting until you’re deep in wedding planning.
“As soon as marriage discussions start, the partner advocating for a prenup should bring it up,” Ravdin advised.
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Also, it’s crucial to know your state’s deadline for submitting a prenuptial agreement. For instance, California requires a seven-day notice. This means one partner must present the prenup seven days before the other signs it to ensure there’s enough time for review.
Discuss prenups with empathy
Conversations about prenuptial agreements can be sensitive, as they require revealing financial details that may feel private. Attorney Julia Rodgers recommends approaching the discussion with care.
“A prenup is as much about emotions as it is about legalities,” said Rodgers, CEO of Hello Prenup, an online service for prenuptial agreements.
She encourages couples to express why they want a prenup and share any fears they might have about it. Many younger individuals cite personal experiences, like seeing their parents go through tough divorces, as motivation for wanting one.
Ask the right questions regarding a prenup
Engage in discussions about your assets and how you would like to divide them if divorce occurs. This is also an ideal time to talk about your expectations for your married life.
Rodgers suggests asking the following questions:
— Do you want children? Will both partners continue working?
— If you don’t want children, what kind of lifestyle do you aspire to?
— Are you looking to buy a house or prefer renting?
— How frequently do you want to go on vacation?
— What type of debt are you currently carrying?
— Are there plans to start a business in the future?
A prenup can make divorce easier
Prenuptial agreements can be likened to estate planning, according to Palmer. While couples generally enter marriage hoping it lasts, having a plan in place can prevent complications and financial stress down the line.
“A prenup is a sensible step for those wanting to minimize the pain and cost associated with divorce, especially if there are assets they wish to protect,” Palmer said.
Even with or without a prenup, divorce usually entails a significant investment of time and money. However, a prenup can simplify discussions about property division, spousal support, and debts. It’s important to note, though, that prenuptial agreements don’t cover issues related to child support or other aspects involving children.
Clearing up common misconceptions about prenups
One common myth is that prenuptial agreements favor the wealthier spouse, but Rodgers asserts this isn’t necessarily the case. Since both parties draft the agreement with their respective lawyers, it should ideally protect both individuals.
Prenuptial agreements are beneficial not only in the event of divorce; they can also help clarify financial roles and expectations during marriage and in the event of a partner’s death.
What happens if you skip the prenup?
If you don’t create a prenup, the distribution of assets during a divorce will be subject to state laws. Every state has default regulations that dictate how property is divided. Generally, these rules aim for an equitable distribution, but this can vary based on local laws.
Debt accrued or new property obtained during the marriage will also be divided according to these regulations.
“For example, if you accrue student loan debt after getting married, that debt could be classified as marital property, depending on your state,” Rodgers explained.
Some states, like California, mandate a 50/50 asset split in the absence of a prenup. Others, including Iowa and Colorado, may distribute assets based on proportional considerations like earning potential and financial needs.
Ready to draft a prenup? Here’s what to do next.
If you both agree on pursuing a prenup, it’s essential for each partner to have legal representation to either draft or review the agreement.
Ravdin generally begins by having clients complete a worksheet to articulate their desires and requirements for the prenup, using this information to create a draft.
“If both parties are clear about their needs, I can proceed with drafting the agreement,” Ravdin said.
The cost of preparing a prenuptial agreement can vary based on your location and chosen attorney, often starting around $1,000.
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