Unsplash
Learn about the cost of a traditional prenup vs. a First prenup.
In the midst of wedding planning, with its floral arrangements and cake tastings, there lies a decidedly less glamorous, yet fundamentally important consideration: the prenuptial agreement. But before we dive into the economics of it all, let's address a foundational question: What exactly is a prenup, and why do couples opt for them?
What is a Prenup?
A prenuptial agreement, colloquially known as a prenup, is a legal contract entered into by a couple before they marry. This document outlines how assets and financial matters will be handled in the event of divorce or death. Far from being a forecast of doom, prenups are a practical tool for managing the realities of marriage, offering clarity and protection for both parties. Think of it as relationship insurance: you hope you never need it, but it's invaluable if you do.
Why Opt for a Prenup?
Couples choose prenups for various reasons, from safeguarding individual assets to protecting business interests and ensuring pre-existing family commitments are honored. It's about creating a sense of security and fairness, allowing couples to enter into marriage with open eyes and mutual understanding.
The Financials of Forever: Understanding Prenup Costs
So let’s talk about dollars and cents. First, the traditional way. Crafting a prenup with the help of lawyers, which is crucial for its enforceability, can normally range from $1,500 to an eye-watering $10,000 and up – per person. As you can see, this can add up to $20,000 and up per couple.
Then, there’s the FIRST way. If you get a prenup with FIRST, all you’re paying is a flat fee of $2,650, and that fee covers the cost of 1 attorney for you, and 1 for your partner.
And don’t forget, with the “traditional way”, several scenarios can transform a straightforward prenup into a more complex and costly affair (while FIRST won’t cost you extra for these):
Children from Previous Chapters: Bringing children into a new marriage introduces considerations around inheritance and financial provision, complicating the prenup's structure.
Past Marriages: Previous marital commitments might require alimony or other financial arrangements, necessitating detailed clauses in the prenup to navigate these obligations.
Business Ventures: For entrepreneurs and business owners, a prenup must address business valuation and ownership, ensuring the enterprise's continuity and protection.
Real Estate and Investments: Substantial assets, like property and investment portfolios, require meticulous documentation and planning within a prenup to manage division or retention correctly.
Inherited Wealth and Trusts: Assets expected through inheritance or established in trusts add layers of complexity, as these often involve broader family interests and long-term financial planning.
Conclusion: The Value of Preparation
While the upfront cost of a prenuptial agreement might initially seem daunting, it's more accurately viewed as a strategic investment in your shared future. By engaging with legal expertise and carefully considering your options together, you can craft a prenup that not only reflects your personal values and goals but also fortifies your union against unforeseen challenges.
In essence, a prenup is not just a financial arrangement; it's a testament to the strength and resilience of your partnership, offering peace of mind as you embark on life's journey together.
And with FIRST, we’re keeping your costs under control.
Source:
Brides.com: Considering a Prenup? Here's Everything You Need to Know
