Prenuptial agreements aren’t just for the ultra-wealthy anymore. Many people think discussing getting a prenup is unromantic or will strain their relationship. It shouldn’t strain your relationship, if anything it should make it stronger. Planning a wedding and preparing to spend your life with someone is a lot of work, but it is important to have financial discussions prior to your wedding. Think of a prenuptial agreement as insurance. You don’t buy a new car planning to get into a wreck, but it is always nice to know you’re protected.
The Difference Between a Prenuptial Agreement and Postnuptial Agreement
A prenuptial agreement is a contract created by a couple that determines how they’re assets will be divided should they ever get divorced. A postnuptial agreement is similar to a prenuptial agreement, except that it is entered into by spouses any time after the date of marriage. Both prenuptial and postnuptial agreements, if done with the knowledge and adherence of New Mexico law, are legally binding and enforceable documents.
Cost
While free DIY options exist, you get what you pay for. Getting a prenup by an attorney can be a wise investment and save you money down the road should it need to be used. The cost of getting a prenup ranges depending on how complicated the division of assets will be. Many attorneys bill at an hourly rate and New Mexico Legal Group follows this lead.
Why More People are Getting Prenups
As time changes so does the way we think. More and more millennials are getting prenups nowadays because they’ve waited until later in life to get married accruing more assets and life experience than their predecessors. Prenuptial agreements are no longer taboo and exclusive to high-net-worth individuals. Many millennials have embraced prenuptial agreements and it has become an important part of marriage planning future financial preparations. There are different societal factors to consider keeping separate than there were in the past like social media, debt, personal finances, embryo care, etc.
Millennials that experienced divorce with their own parents have seen how dividing a divorce can damage relationships and have seen this through a close-up lens. While no one hopes for a divorce when you decide you want one, typically it is desired as soon as possible. Having a prenuptial agreement in place can help speed up the process.
Is a Prenup Right for you
If you’re getting married soon or have just recently gotten married it is important to determine whether a prenuptial or postnuptial agreement is right for you. If you have assets you want to maintain as your own, a prenup may be right for you. While there are many reasons to consider getting a prenuptial agreement here are five reasons we think you and your fiancé should consider getting one:
1. If you own a business
Owning a business takes a lot of time, hard work, and money. Whether you open a business prior to meeting your spouse or open one soon after getting married it is important to consider your finances. It is always best to keep these types of finances separate as no one wants to lose out on something they worked so hard to build. Having a prenup or postnup in place can help keep your business separate property. This is one of the best ways to protect your business during a divorce.
2. 50% of all marriages end in divorce
Although this isn’t a statistic anyone that is about to get married wants to hear, it is the truth. It might not hold true for your marriage and we hope that’s the case, but it’s always nice to be protected vs being in a complicated situation no one wants to deal with.
3. You have significant inheritance or retirement benefits
Getting a divorce can without a doubt affect your finances. If you have a large inheritance either for yourself or that you wish to leave behind for children, a prenup will protect you and them. Your retirement benefits can also be affected and this can delay your retirement, which we know everyone looks forward to sooner than later.
4. Keep Your Finances Separate
When you get married it’s typical to begin combining different aspects of your lives. However, there’s certain things you may want to consider keeping separate or at least solely under your name, finances being one of them. If you have money coming in that you created for yourself you may want to keep these funds under your name only and separate from your spouse (this doesn’t mean you can’t still spend this money on them). New Mexico is considered a community property state, but this does not mean that during a divorce everything will be split 50/50. Basically, anything considered separate property will not be split equally. If you have a joint account, you will have to split these funds with your spouse whether they contributed to it or not. While keeping your finances separate won’t be the answer to all your problems it can make things easier in the future.
5. You Have Children from a Previous Marriage
Having a prenuptial or postnuptial agreement can be helpful for more people than just yourself. If you have children from a previous marriage having one of these agreements can ensure that their inheritance won’t be touched should you and your new spouse decide at any time to get a divorce.
6. Simply to Protect Yourself
If you want to get a prenup or postnup, you don’t need to be Elon Musk and you don’t need to have an elaborate reason as to why you want one. Life is unpredictable and it’s okay to want to protect yourself when and where you can.
If you’re considering whether a prenuptial or postnuptial agreement may be right for you contact one of our highly skilled New Mexico Legal Group attorneys at 505-843-7303 (Albuquerque) or 575-339-2100 (Las Cruces).