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They are often seen as the preserve of the ultra-rich and celebrities.
Yet prenuptial agreements are becoming increasingly popular among couples of all income levels: a 2022 study by market research firm Harris Poll found that 15% of engaged respondents had signed one, compared with 3% in 2010.
And one financial planner insists that virtually every married couple should agree on a plan in the event of divorce.
Rachael Burns, founder Real Value Financial Planning, told DailyMail.com: “Prenuptial agreements have a reputation for being reserved for very wealthy people. And they are considered something very unromantic.
“But I think it’s actually very romantic. It’s a way to avoid so many potential conflicts.
Certified financial planner Rachael Burns insists that virtually every married couple should have a plan in place in the event of divorce.
A prenuptial agreement is essentially a contract written by a couple before they get married. Typically, it lists all the assets each person owns, including any debts, and specifies how these will be divided in the event of a divorce.
Many celebrities have reportedly signed one, including Kim Kardashian, Kanye West, Britney Spears and recent ex Sam Asghari.
But Burns — who specializes in helping newly single women after divorce — advises all couples to consider one, regardless of the size of their assets.
She added that they are especially important for parents – usually mothers – who take time off to raise a couple’s children during the marriage.
“If you take 20 years off work to raise children, that significantly hurts your earning potential and your retirement savings,” Burns told DailyMail.com.
“A prenup ensures that you will be fairly compensated for those 20 years of unpaid work.
“And signing an agreement triggers open communication between couples about their finances.” It’s also better for couples to agree on these things when they’re happy and in love rather than during a breakup, when things are unpleasant and less fair.
She advises couples to discuss an agreement well before the wedding to give both parties time to fully digest it.
Additionally, she recommends that both partners have their own separate attorneys to negotiate the deal fairly.
She said: “I once counseled a woman whose husband gave her the prenup after the wedding invitations had already been sent out.
“If you discuss a prenup too close to the wedding, it can actually invalidate the agreement in court because one party might say they feel pressured to sign it.”
The extent to which a prenup is enforced may depend on the state in which the couple resides. Although all 50 states officially recognize the agreement, many disagree on the details.
For example in California, if the contract concerns spousal support, both parties must have had legal representation at the time of signing in order to be enforced.
The majority of states require “equitable distribution” in divorce cases, meaning that property is divided equally by the judge.
According to the latest available data, some 689,308 divorces took place in 45 US states in 2021, with couples spending an average of $7,000 to dissolve a union.
However, nine of them follow a “community property” law which states that spouses must share all property acquired during the marriage 50/50. These states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
According to the latest available data, some 689,308 divorces took place in 45 US states in 2021, with couples spending an average of $7,000 to dissolve a union.
And the consequences can be disastrous for women. A 2018 study by online marketplace Worthy found that 44% of women at various stages of the divorce process were in debt and in the process of paying it off.
Separate figures from the U.S. Government Accountability Office’s special report to the Senate reveal that women’s household incomes drop 41 percent on average after a marital separation.