Getting married is probably the most exciting time for most women. From living together to eventually making a baby, marriage is the next step in your life.
But we’ve all heard the storied of celebrities breaking up, filing for divorces, and eventually, we’ll see a headline that reads somewhere along the lines “Jeff Bezos pays ex-wife billions of dollars”.
What do they mean by these headlines? Well, Jeff paid MacKenzie huge sums of money because they hadn’t signed a prenup.
As to what a prenup is, well, that’s something that we will talk about in this article.
So, here is what every woman needs to know about prenups.
Here’s the Deal
Prenups are premarital agreements that both husband and wife sign. This agreement essentially tells who gets what in the case of a divorce. You can imagine why people would hesitate to discuss these things before marriage.
Nonetheless, wealthy people and celebrities are usually the types of people that sign prenups.
There are a few things to note when it comes to these agreements. First off, the laws are very different regarding prenups essentially everywhere. London has different laws to Los Angeles and so on.
But the most important thing about them is that in the case of a divorce, this agreement steps into law.
It’s Not Romantic, But You Should Consider It
As we just said, prenups can really make you think whether or not the marriage will even succeed. But that doesn’t stop more and more UK women from getting them.
But considering that 42% of all UK divorces end up in costly court battles, a prenup agreement is actually a smart thing to do.
It’s More Complicated Than You Think
In some parts of the UK and Europe, a prenup agreement isn’t actually legally binding. That’s the case for England and Wales, but not for Scotland.
What this means is that couples that have signed such an agreement can only enforce it if they meet the criteria. The most notorious case of a prenup agreement was back in 2010 when Ms. Radmacher and her fiance signed a prenup stating that no one would benefit financially from a divorce.
They did have a divorce 10 years later, and the judge was legally obliged to enforce the agreement. This was good news for Ms. Radmacher’s £100 million fortune, but not for her fiance.
What Are the Criteria?
We also said that certain criteria have to be met for a prenup agreement to be enforced. Well, here is exactly what we mean.
- Every prenup agreement must be fair and reasonable towards both sides. If this criterion isn’t met, then it can be disputed in court by the party that feels in such a way.
- The agreement doesn’t take into consideration children nor does it seek to harm children in any way.
- The agreement is enforced only if both parties have their own legal counsel to assist them in the matter. If one of the two parties doesn’t have a lawyer by their side, then the agreement will not be enforced.
- Both parties must be completely transparent regarding their finances before signing the prenup. This means that both parties must disclose property, investment, savings, etc.
- Both parties must sign the agreement at least 28 days before getting married.
It Includes Everything!
Ladies, do know that a divorce settlement and a prenup are two different things. On a divorce settlement, you can get away with a few things. That’s not the case here!
Prenup agreements don’t have to be signed so that the opposing party gets nothing. You can include anything in want in the agreement and divide it however you want, or not divide it at all!
This means that you can include your savings, business assets, private assets, inheritance, personal stuff, pensions, and property as clauses for the agreement.
What Does it Actually Do?
Okay so we’ve talked a lot about criteria and what can be included, but what does this piece of paper actually do?
Well, prenups are the most effective ways to avoid a 50/50 split of wealth. This prevents people from losing their pre-marriage wealth because of a divorce.
Divorcing without a prenup can be a very hostile affair, one that every woman should run away from. Simply said, instead of losing 50% of your wealth that you had before the marriage, you can get away with what you had by singing a prenup.
Celebrities Aren’t the Only People that Sign Prenups
Ladies, don’t let showbiz fool you from the fact that it is completely normal to sign a prenup. The thing you should know is that you won’t be able to sign a prenup if your wealth is relatively the same as your spouse.
This is why we get the feeling that only rich celebrities can do this sort of agreement. If one of the parties has a significant financial advantage over the other, then this agreement can be made.
If you have a large inheritance, then you can agree to a prenup to protect it. This will also work for your successful business, properties, etc.
There are real scenarios where a prenup agreement would be smart to sign, regardless of how you feel about it. Here are a few.
- If you have children from a previous marriage and want to leave certain assets to them. This is done to protect their inheritance rights.
- If you have a successful business before the marriage and want to make sure it stays in your hands.
- If you want to protect certain assets that might come to you in the form of inheritance. It doesn’t matter when the assets come as long as you state what they are.
These are some scenarios where it would be smart to sign a prenup with your fiance.
It’s All About Timing
We said that you should sign the agreement at least 28 days before getting married. But there is a way to sign it after the wedding. The official name of this type of document is called a “Postnuptial”.
A postnuptial works exactly the same as a prenup, only you sign it after getting married.