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Making Sense Out of Dollars

Prenuptial Agreements

Part 7 of 9

Joel Lerner, Columnist
Posted 11/5/21

The Disadvantages of the Prenuptial Agreement

Last week we discussed the advantages of the prenuptial agreement. Now, to look at the other side of the story and talk about some of the negatives …

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Making Sense Out of Dollars

Prenuptial Agreements

Part 7 of 9

Posted

The Disadvantages of the Prenuptial Agreement

Last week we discussed the advantages of the prenuptial agreement. Now, to look at the other side of the story and talk about some of the negatives involved.

Religious reasons may effect the agreement. Each religion has its own beliefs and may cause the prenup to be unacceptable. I strongly urge you to seek religious council before attempting this agreement.

Creating a prenuptial agreement implies you don’t see the marriage as “forever.” Prenuptial agreements come into play only when a marriage dissolves. By creating one, you send the message there is a real possibility your marriage will fail. Your spouse might even take a prenuptial agreement as evidence you won’t fight for the marriage if problems come up. This can be a real romance killer.

Establishing a prenuptial agreement can create burdens if circumstances change. People cannot predict everything that will occur in their lives or marriage. A prenuptial agreement is based largely on assumptions founded on current situations. Should situations change, the prenuptial agreement can complicate what otherwise would have been fairly simple matters. You will need to update your agreement just as you would your will, life insurance and similar contracts.

Signing a prenuptial agreement may necessitate a change in lifestyle. Even when prenuptial agreements can’t outline spousal or child support, they do influence the division of property and assets. Therefore, a prenuptial agreement can guarantee that some money has to go to your spouse or children. This can mean you have a lower percentage of funds after the divorce with which to maintain your lifestyle.

Prenuptial agreements are subject to a judge’s opinion. Even if you sign a prenuptial agreement, if you take the agreement to court, it’s up to a judge to decide the validity and reasonableness of every clause. If he thinks part or all of the agreement is ridiculous, he can throw it out. Although an attorney who specializes in divorce can reduce the likelihood of this happening by alerting you beforehand to potential risks, there is no way to predict what a judge might think given the current context in which he reviews the contract. Non-financial (personal) issues such as whether your spouse will wear makeup or take out the trash are permissible in states where the Uniform Premarital Agreement Act applies, assuming the stipulations don’t violate public policy or other laws, but the more personal issues you include in a prenuptial agreement, the more likely it is the judge will see the contract as less serious.

THOUGHT OF THE WEEK

“First learn, then form opinions.”

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