More than two million couples get married in America every year. However, not all of these couples get their happy ending.
In fact, more than 750,000 couples get divorced each year which means the divorce rate in the US is pretty high.
Divorce is not something any couple plans and it can be a challenging time emotionally, practically, and financially.
Because of this, a lot of couples get a prenup before their big day. This is a legal document that protects certain assets during a divorce.
If you’re engaged then you need to ask yourself how much does it cost to get a prenup and is it worth it for me?
In that case, you’ve come to the right place! Read on to find out everything you need to know about prenuptial agreement costs.
How Much Does It Cost to Get a Prenup?
Often when you hear the word ‘prenup’ you think of millionaires and marriages made for financial gain. But getting a prenup is actually a very everyday legal practice and isn’t reserved for the wealthy.
This is a way of creating peace of mind between yourself and your partner before you tie the knot. So you might be surprised to hear that it doesn’t cost the earth.
A straightforward prenup between two people costs an average of $2,500 in total. This includes prenup lawyer costs and other expenses.
In fact, most couples in financially uncomplicated situations end up paying between $1,400 and $2,400 for their prenups.
The average is actually increased by those in more complex situations. This is because a number of factors can make getting a prenup more expensive.
With that in mind, let’s take a look at some of the things that can affect the cost of a prenup.
Where You Live Affects Your Prenup Cost
If you’re interested in how to get a prenup, you need to be aware that your circumstances may make this more expensive. Where you live can play a big role in how much your prenup costs.
If you live in a major city, for example, this will make your prenup more expensive. This is because the cost of living in a city is higher so you will need to negotiate more financial security. Within this, the cost can vary between and even within cities themselves.
For example, getting a prenup drawn up and signed in Manhattan can cost between $7,500 and $10,000. That’s at least $5,000 above the national average!
In contrast, getting a prenup drawn up in the countryside will be a lot cheaper.
How Much You and Your Partner Need to Negotiate
In most cases, there are certain assets that you and your partner will want to protect in the case of a divorce. This is the main reason why couples sign prenups in the first place.
If you and your partner can agree on what these assets are and who has rights to them in a divorce, then your prenup will be fairly simple to draft.
However, if you can’t agree then your prenup will become a lot more expensive.
This is because for every draft and negotiation that takes place you’ll get a lawyer’s bill. The longer your negotiations go on for, the more bills you get.
This is why it’s a good idea to discuss your assets with your partner beforehand and – if you need to – to explain why you want to protect certain things. The more you can agree on before you involve lawyers, the shorter your negotiation will be.
This is also a great opportunity to be transparent with your partner about all of your assets.
The last thing you want is them finding out you’ve tried to conceal finances from them before the big day!
You should also discuss technical financial issues, such as how you’re planning to file your income taxes once you’re married. Getting these straight will also speed up negotiations.
Complex Financial Issues
If you’re wondering how much a prenup is going to cost you, then you need to take a look at your own financial situation. This doesn’t mean looking at how much money you have but at how it’s organized.
The more complicated your financial situation, the more expensive your prenup will be.
For example, if you are a business owner the chances are you’ll want to include this in a prenup. That way you won’t end up with your ex-spouse as your business partner. But this can become complicated depending on how your business is organized.
Trusts, limited liability companies, and partnerships are all common in business. These are great as they help to protect your own wealth and will save on your taxes. However, they can make arranging a prenup more expensive.
This is why it’s a good idea to discuss all of your financial arrangements with your future spouse.
In order to draw up an effective prenup, you’ll also need to discuss these with your attorney and this can take some time. The longer this takes, the bigger your lawyer’s bill will be!
Weigh Up Your Prenup Costs
As you can see, there’s no straight answer to the question ‘how much does it cost to get a prenup?’ In fact, this depends a lot on your circumstance as an individual and as a couple.
However, if your financial situation is straightforward then getting a prenup doesn’t have to cost you the earth.
It could also save you a lot of time, money, and upset further down the line.