FEATURES Get the Prenup

IT’S TIME WE SHED THE STIGMA ATTACHED TO PRENUPTIAL AGREEMENTS.

By Esther Lee

Illustrations By Abby McCartin

No couple enters marriage believing that their love story will someday end. Statistically, however, one in three will walk down the aisle—and eventually into a courthouse to file their dissolution of marriage. Yet only 5 percent of to-be-weds sign a prenuptial agreement.

A prenup offers protection for both parties if you go your separate ways. Since it’s legally binding within the state of registration, a marital agreement can influence the division of property and debt, or who gets child custody. “The interesting thing about prenups is you expect your partner to be a gold digger, you’re a gold digger yourself, or you don’t think this marriage is going to last,” speculates Tori Dunlap, creator of HerFirst100K. com and author of Financial Feminist. “The truth is that most couples have a prenup already. It is chosen for you by the state. You already have a hard-and-fast legal order of operations of what happens if you separate.”

Our data found that 46 percent of couples describe prenups as “smart,” while another 20 percent perceived these contracts to be “cynical.” Seventeen percent went so far as to call them “pointless.” Prenups have built quite the reputation in pop culture, but we can learn something from the Real Housewives and the Kardashians. While each marriage differs, a solid prenup unifies couples in at least one respect: It encourages communication as you prepare for marriage. If you’re still on the fence about whether to get one, here are 12 scenarios where a prenup may benefit you.

One of you is wealthier or has assets.

You may want to protect your assets if you come into the marriage with a higher financial worth than your spouse.

Julia Rodgers, CEO of HelloPrenup, an online prenuptial agreement service, gives an example of an engaged couple where one party purchased a home and the other party paid rent on it. If the couple divorced, some states might rule that the property should be split between owners.

One or both of you has received sizable gifts.

Let’s say your parents regularly give you money. Even after marriage, they may continue their generosity, but both parties won’t necessarily agree on how to use the funds. “Without a prenuptial agreement, in most states, monetary gifts received during the marriage will be considered marital property,” explains Rodgers. “A prenup allows couples to decide if they would like those monetary gifts to be considered separate property.”

One or both of you will receive an inheritance.

The division of inheritance is a common issue couples will face in marriage. In some states, like Arizona and California, debts and assets (including an inheritance) are divided equally among spouses. “Without a prenuptial agreement, inheritance may or may not be considered marital property,” notes Rodgers. “Many parents who are considering passing down their wealth to their children, either in trusts or other instruments, [are typically] concerned about the prospect of their hard-earned wealth being split during a divorce.”

At least one of you has been married before.

Some circumstances may be different than they were in the first marriage. If you’re bringing assets or monetary commitments into a new marriage (such as child support and multiple properties), you may want to keep them separate from your new spouse’s financial responsibilities.