Does it make sense to get a prenup?

In essence, getting a prenuptial agreement before getting married, or entering into a partnership, is quite a personal decision. So, although I can’t say whether it would make sense for you, I will try to lay out the facts as best as I can.

I think first off, it’s important not to think of prenups as a commentary on your relationship. There are times things don’t work out and it’s better to be prepared. In England for example, around 42% of marriages end in divorce, according to the ONS.

For women, it can be a way to safeguard their existing assets, protect their financial independence and also ensure that they are fairly compensated for the invisible and unpaid labour that they take on.

For example, if you had assets that you acquired on your own and have built up any kind of wealth, a prenup could be a way to protect these. But it’s not just the higher earner that a prenup can protect. If you end up taking time off from paid work for caring duties, a prenup can also protect you.

Just because you’re staying at home doesn’t mean that you shouldn’t be fairly compensated. Because you spend time and effort managing the household needs, you oversee the budget, take care of the children and most likely take on the bulk of household tasks like cleaning and cooking.

This one article has dubbed stay-at-home mums as the “CEOs of their homes”, which makes sense. But this all takes a toll on your own financial well-being. It’s not just that you’re not earning any income, it also means that you’re not contributing to a pension, you’re not saving and investing to grow your wealth, and the gap in your career could potentially make it more difficult to return to work if and when you need to.

There are a lot of clauses that you can include in a prenup and it’s not just about alimony payments. If there is no prenup then you leave a lot to chance and the discretion of a judge. In addition, prenups can get couples discussing important financial issues before they tie the knot and ensure that there is transparency

Here is a good list of clauses by Ellevest that are worth including in prenups.

It’s important to note that not all countries legally recognise prenups though and don’t automatically enforce them. They are recognised in many European countries, like France and Germany, as well as the US, Canada, Australia and New Zealand. In the UK however, they are not automatically legally binding.

Action of the week: Have you signed a prenup? Why or why not? What are some clauses you’ve included? Let us know.