The Value of a Prenuptial Agreement

By Andrea Vacca
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A prenuptial agreement is a document you sign before getting married. It helps you plan out your finances and other aspects of your marriage in case you ever separate or get divorced. Even if you do not plan on ever getting divorced, a prenuptial agreement is a great way to improve communication in your relationship and provide security for the future. 

Many clients wonder how much a prenuptial agreement will cost. But what I wish more clients would ask and think about is, what is the value of a prenuptial agreement?

What is the value of a prenuptial agreement?

The question of value is very important because prenuptial agreements are basically insurance policies. There’s insurance for both you and your spouse in this document. It not only ensures how assets are defined and divided, but it also ensures that any assets you had before your marriage will be saved or shared properly. 

In fact, your prenuptial agreement will:

  • Clarify how legal fees and debts are handled and paid
  • Provide short-term and long-term information and security for both spouses
  • Help you avoid costly litigation if you ever get divorced
  • Protect your inheritance and instruct how it will be shared
  • Ensure your rights and obligations with regard to spousal and child support

Essentially, your prenuptial agreement will provide the important financial security you and your spouse need to move forward with your relationship without fear. 

A prenuptial agreement will also help you avoid emotional turmoil and stress down the road since you’ll have addressed all the “tough” issues in advance. In fact, these conversations are actually invaluable and will strengthen your marriage.

How much does a prenuptial agreement cost?

Now that you know the value of a prenuptial agreement, you’re probably still wondering how much it will cost you. That depends on your unique situation. The more complex your prenuptial agreement—that is, the more assets or money you have—the more your prenuptial agreement will cost. 

But regardless of the cost, I encourage clients to think of a prenuptial agreement as an investment. By investing $5,000 or $10,000 now, or whatever your prenuptial costs to negotiate and draft, you will walk away with a valuable, futureproof agreement that you can both rely on.