Common Misconceptions About Prenups
A prenuptial agreement, commonly known as a “prenup,” is a legal document that is executed prior to a marriage that establishes legal rights to property and assets in the event of divorce, incapacitation or death. In addition, prenups protect spouses from being subject to each other’s debts and other liabilities such as childcare.
Engaged couples tend to avoid discussing their prenup at all costs, as it can be an uncomfortable and unromantic conversation. The last thing anyone wants to talk about before they say “I do” is their finances, assets and property rights. However, prenups are a necessary safeguard that all couples should consider establishing.
While prenups are increasingly common among young couples these days, there are several misconceptions that our Birmingham divorce attorney aims to debunk. We strongly believe that all couples should, at the very least, consider formulating a prenuptial agreement before they agree to a “happily ever after” as spouses.
As such, we urge you to examine the following 5 myths about prenups that you must learn:
- Prenuptial agreements indicate a “doomed” marriage: Contrary to popular belief, prenups are not an extra “layer” of protection in the event of divorce. In fact, they are an extra layer of protection for the marriage itself. This is because spouses can discuss and solidify their financial duties through a mutually beneficial agreement and talk openly about their finances, assets, debts and long-term goals. These skills are essential aspects of a strong marriage and can strengthen a marriage altogether.
- Prenuptial agreements are for rich people: It doesn’t matter how much money each spouse makes. Prenups can protect their hard-earned assets and financial interests no matter their income level. Without a prenup, it can be difficult to identify marital assets in the event of a divorce, which can ultimately result in complications down the road. Also, spouses may enter a marriage with a low income but acquire a great amount of wealth in the future. As such, prenups can protect spouses’ current and future earning potential.
- Prenups are not enforceable, so why bother?: In Alabama, both spouses must disclose all of their assets and liabilities before entering into their prenup or do so within their prenuptial agreement. Prenups should be executed in writing and signed by both spouses, and must not be unconscionable by any means, or else a judge may not enforce them.
- Prenups indicate a lack of trust: Think about how marriages would function if both spouses were too uncomfortable to discuss their assets and financial interests. This flaw can damage a marriage more than a prenuptial agreement would. Having an open and honest conversation about each other’s assets, debts and the like can build spouses’ trust and peace of mind. Remember, prenups do not only prepare for divorce but also incapacitation or death. Spouses who execute a prenuptial agreement demonstrate that they trust each other enough to handle one another’s properties, financial interests and children, for instance.
- Prenuptial agreements are costly: While some argue they are expensive, prenups can save spouses a lot of money in the case of divorce. Attorney costs and court fees can greatly exceed the amount of money spent on a prenup, which is why executing a prenup can save hundreds and thousands of dollars that would otherwise be spent on litigation fees in a divorce.
Get Clarity from Our Birmingham Divorce Lawyer
Our divorce attorney at Shaw Family Law, LLC understands that you may likely have questions about whether a prenuptial agreement is right for you. The information above is purely for information purposes and not legal advice in any way, therefore we encourage you to get your questions answered during a consultation with our divorce lawyer.
When you do, we will help provide the clarity you need to make the best possible decisions for your situation. In addition, we can help you formulate a comprehensive, detailed prenup that is enforceable by the Alabama family courts.
Contact us at (205) 259-7650 to learn more!