Are you wondering what a prenup is, and why people make them? According to the Harvard Gazette, somewhere between 5% and 10% of Americans opt to get prenuptial agreements. Here's some basic information to help you understand what prenuptial agreements are.

What Is a Prenup?

A prenuptial agreement, also known as a prenup, is a written contract between spouses. These agreements are created before people legally marry. These documents detail what happens to assets and finances during the marriage and in the event of divorce or death. Prenups give couples the opportunity to fully understand the legal rights they acquire and give up when they get married. You can think of a prenup as a chance to actively work together with your spouse to create the laws that'll govern your marriage. Without a prenup, your state's marriage laws will decide how assets and debts are divided during divorce and in the event of death.

Who Needs a Prenup?

Unlike what many people think, prenups aren't just for rich people. While they're usually used to protect the assets of a wealthy fiancé, prenups can be used by any couple. Some couples will set up prenup agreements to pass separate property to kids from prior marriages. Other couples set up prenups to clarify financial rights. A prenup isn't just meant to govern what happens during divorce; it also clarifies the rights and responsibilities of everyone during a marriage and in the event of death.

How Much Does a Prenup Cost?

The cost of prenuptial agreements depends on several things. For the most part, it depends on the lawyer you've chosen to work with and the complexity of your estate. According to Smart Asset, prenups can range anywhere from $1,500 to $10,000. You can get quotes from several attorneys to figure out the average cost in your area. At least three quotes should give you a clearer picture. Bergermann Law Firm chooses to draft the prenup while the client is present at the appointment. The client makes the decisions on the scope of the document. We charge by the hour for however long it takes, which is generally between two and four hours, costing anywhere from $800 to $1,600. Future appointments to modify the agreement are billed hourly as well.

Prenuptial agreements can be highly convenient. They come in handy when a couple divorces and will ensure that there are no heated arguments and lengthy court processes. Are you thinking of entering into a prenuptial agreement? It's important to get advice from our experienced attorney as she knows what works best and why. Get in touch with us at Bergermann Law Firm today if you need help drafting your prenuptial agreement or to find out if a prenuptial agreement is appropriate for you and your future spouse.