A prenuptial agreement may help couples organize and protect their finances before they jump into marriage. Creating one can allow you to openly discuss your assets and debts and reach important agreements about what will happen in case of divorce. This can make the divorce process more predictable and help you avoid costly litigation, should your marriage come to an end.
That said, for most people, creating a prenuptial comes with a price. How much a prenup costs varies from couple to couple because it depends on how complex your finances are, whether you hire an attorney for help and where you live.
This article will help you better understand prenuptial agreement costs and what the price tag may look like for you.
The purpose of a prenuptial agreement
When a marriage officially ends, the couple needs to agree (or the court needs to decide) how to allocate debts, finances and parental responsibilities between the divorcing spouses.
A prenuptial agreement often outlines each partner’s rights and responsibilities regarding assets and debts if the couple should divorce. Prenups may define:
- Who can keep the marital home
- Whether either spouse is entitled to spousal support (including the amount and duration)
- Whether either spouse must pay for the other spouse’s health insurance
- What property is marital property and subject to division
- What debts are marital debts and subject to division
- How to divide marital property
- How to divide the marital debts
- Whether either spouse is entitled to a portion of the other spouse’s retirement benefits
- Whether either spouse is entitled to proceeds from the other spouse’s life insurance
- Each spouse’s right to manage or collect profits from the other spouse’s business
- How the spouses will pass on their assets through a will or trust
The cost of a prenuptial agreement
The cost of a prenuptial agreement in the U.S. can vary from several hundred to several thousand dollars. The exact price depends on your circumstances and may include any or all of the following fees.
The cost of collecting financial information
If a spouse signs a prenup or a postnuptial agreement without a complete understanding of the other spouse’s financial obligations and resources, the court may not enforce it.
The records you might need to collect for a prenuptial agreement include:
- Bank statements
- Tax returns
- Credit reports
- Bills
- Invoices
- Medical records
- Lease documents
- Business documents
- Investment statements
- Insurance policies
- Loan documents
- Titles
- Mortgage papers
Collecting this paperwork may come with a cost. For example, requesting credit reports could cost you as much as $14.50 per report. The more assets and liabilities you have, the more you could end up paying for document requests in preparation for negotiating a prenuptial agreement.
Still, understanding each other’s liabilities and assets may help protect you from costly surprises in a divorce. If you have a prenup but one of you failed to disclose an asset or debt, you might have to attend a divorce hearing to determine how you and your spouse must handle that financial situation, which could mean paying more in court costs, attorney fees and witness fees.
The cost of hiring an attorney
Working with an attorney may be a significant but important part of your prenup cost. They may help you identify, gather and review all the information you need to make the best decisions about what terms should be in your agreement. An attorney may also draft your agreement in a way that makes a court more likely to approve and enforce it.
How much you can expect to spend for a lawyer’s help with a prenup varies from attorney to attorney and state to state. Attorneys typically cost several hundred dollars per hour, though some will help you prepare a prenuptial agreement for a flat rate.
The cost of hiring a financial professional
Since prenuptial agreements typically cover your financial rights and obligations in a divorce, you might need to speak to an accountant about your case. An accountant may analyze your current financial situation and help forecast your future obligations and needs. The cost to hire an accountant varies but is often a few hundred dollars per hour.
The cost of striking a deal
The things you agree to in your prenuptial agreement may come with their own costs.
For example, if you and your spouse split, you might owe them thousands in support payments, or you might have to agree to give them the family home in exchange for them handling a marital debt such as a tax liability or student loan. To reach an agreement with your fiance, you may have to give up something of significant value.
You get to choose what you sacrifice or keep in a prenuptial agreement, but there’s a degree of risk in your choices because your assets or liabilities at the time you divorce might be smaller or greater than you anticipated when you signed your agreement. There’s also a possibility that you could fare better in divorce court without a prenuptial agreement.
Nevertheless, the outcome of a divorce hearing is far more unpredictable than what you determine in a prenup, and lengthy divorce proceedings may be expensive because of filing fees, attorney fees and the cost of traveling to court and missing work.
How an attorney can help
Although you don’t have to, many individuals choose to hire an attorney to write their prenuptial agreement. An experienced lawyer may help you understand how to protect your legal and financial interests. An attorney may review your financial documents, put you in touch with financial professionals and draft agreement terms that protect your rights and are enforceable under your state’s laws.
Sofie is a writer. She lives in Brooklyn.
