Daily Quiddity

Nearly Everyone Needs a Prenuptial Agreement

A "prenup" is shorthand for a pre-nuptial agreement, a legal document that lays out how couples will divide their assets should they divorce. Kimberly Palmer wrote about these agreements for U.S. News and World Report in the February 8, 2012, issue. She contacts Silvana Raso, maytrimonial attorney for the firm Schepisi & Mlaughlin in Englewood Cliffs, New Jersey. Raso said prenups were for everyone, "…even if you’re going into marriage with little assets," because assets may be accumulated during a marriage, and it is best not to leave those assets for a judge to divide them.

Couples often assume some assets or liabilities are individually owned, such as student loans, but a court might make a different determination. Couples can take away this stess from uncertainty with an agreement, Raso notes.

The article lists five reasons for looking into prenups:


Talking about "what ifs" can shed light on your relationship.

You can create an agreement even post-marriage if both parties are bringing something to the table (a "bargained for exchange").

Prenups cost around $2,500, around half as much as the average engagement ring.

Couples often make the mistake of waiting until the last minute (or delay considering a prenup indefinitely).

Community property states make prenups even more important.

Raso warns that do-it-yourself form agreements are usually disapproved by courts because of legal requirements that are left unmet. Raso adds that each spouse needs a separate lawyer, because using the same attorney creates an ethical conflict that would invalidate the prenup.

"No one can say 'I definitely won't get divorced,'" says Raso.

http://finance.yahoo.com/news/why-almost-everyone-needs-prenup-163015254.html