GRAND Magazine - July/August 2019 - 34

money

Why prenups are essential
BY JIM BROWN

arriage: to have and to hold...unless life throws
a curveball and then you better be prepared!
After all, what could be more romantic than
discussing prenups with your betrothed?
Not fun to talk about, I know. But unfortunately,
people in relationships that start out seemingly idyllic
sometimes part ways. And the financial consequences
for the unprepared can be quite steep. Losing a significant portion of your assets - accumulated before
or during marriage - in a divorce settlement can set
your retirement and savings goals back years, possibly
decades.

If your son, daughter, or grandchild is
getting married in the near future, I
encourage you to strongly urge them
to look into a prenup.
It's a dreaded, but extremely
necessary conversation.

Consider this: the average legal cost of a divorce
is $15,500 over 10.7 months in the U.S., but legal
fees can be as high as $25,000 on average for
divorces involving children in states like California
and New York.
34 GRAND

JULY-AUG 2019

Here are three insights to
help make your case:
1. Once you realize this is something that needs to be done, it's
much easier to get past the awkwardness. The reality
is, the average cost of a prenuptial agreement is $2,500,
which is a lot less than the cost of a divorce. Look at it like

an insurance policy - no one wants to go to the hospital
or get into a car accident, but at the same time you recognize the need for health and auto insurance. The same
financial precautions apply to entering into a union with
another person.
2. Keep in mind you can amend a prenup once married.
Chances are, if you're getting married in your 20's or early
30's, you may have only begun to accumulate significant
assets, but that can change as your career progresses. So,
as your assets or household members increase, you may
want to revisit your prenup. Prenups can be amended or
revoked, but both parties must agree. Couples can decide
on an option that works best for them right now, without
being saddled with it for life. This certainly adds some
relief to what can be a daunting situation.
3. You need to get comfortable talking about money
with your spouse because it will be an ongoing topic.
Consider getting a head start on discussing money issues,
including: Will you have a joint bank account, maintain
separate accounts or will you decide on some other banking arrangement? Who will handle bill payments and
how much should you save each month? Let's face it,
money is going to be a recurring topic in your marriage,
so the prenup is really just the beginning of that ongoing
discussion.

For more information on finding a
prenup that is right for you or your loved
one, I recommend looking at Legal Zoom
along with consulting a local attorney
who specializes in family law.
Jim Brown is the founder of Your Best Mindset
and the creator of Jim Brown Investing, an
investing course that simplifies successful
investing in the financial markets for retail
investors. Jim holds a B.A. in accounting from
New York University and currently lives in New
York City with his wife and two children

https://www.facebook.com/GRANDmagazine/ https://www.twitter.com/grandMmagazine https://www.legalzoom.com/knowledge/prenuptial-agreement/topic/changing-or-canceling-a-prenuptial-agreement https://www.legalzoom.com/knowledge/prenuptial-agreement/topic/changing-or-canceling-a-prenuptial-agreement https://www.legalzoom.com/personal/marriage-and-divorce/prenuptial-agreement-pricing.html https://www.nolo.com/legal-encyclopedia/ctp/cost-of-divorce.html https://www.nolo.com/legal-encyclopedia/ctp/cost-of-divorce.html https://www.jimbrowninvesting.com/ https://www.usatoday.com/story/money/2018/11/26/how-much-does-cost-get-divorce-most-expensive-states/38446243/ https://www.businessinsider.com/how-much-does-prenup-cost-2018-10

GRAND Magazine - July/August 2019

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