[happygal]

I know this is totally off topic, but I will still ask otherwise I will feel stupid for asking this at work. The more I work in the professional world the more I keep hearing about pre-nups. I always grew up with the idea that you are married for life or at least intend to, but are Pre-nups really that important for professionals?

[kayfcpa16]

@happygal, I don't think that's a stupid question. I think pre-nups should be based on each relationship and individuals.
I'm married without a pre-nup and my S/O and I are both upcoming professionals so we definitely didn't married each other for money (lol we're not rich). Also, I don't see us getting a divorce either, I know myself and my spouse. Now Realistically speaking I If I were to remarry after having established a career and finances and failed a 1st marriage I would definitely get a prenup.. So to each its own.

May the force be with you .

BEC - 78 (2/16)

FAR - 78 (2/16)

AUD - 69 (8/16), 75 (10/16)

REG - 65 (8/16), 65!! (10/16) - Just Shoot Me [Re - Retake (1/17) 75!] ..

DONEEEEEEEE

 

FAR - 2/16 - 78
BEC - 2/16 - 78
AUD - 8/16
REG - 8/16

[taxgeek83]

I grew up with the same ideals; however, the reality is that marriages don't always work out that way. Regardless of what I feel personally, as a professional, I would feel it my duty to help my client protect any premarital assets he or she may have.

That said, I think prenups are more common than you might think, especially among high-wealth individuals. In addition, it might not always be about a “just in case we divorce” scenario; rather, there may be other underlying liability issues there that need to be addressed. Just my thought on it though – I could also be way off base. 🙂

[Anonymous]

I think there's several factors that play into this, including where a couple is in life when they get together, what level of commitment they have, what assets they have, and what other commitments they have. Taking those one at a time…

Where they are in life: if one of you is making $200k a year and one is making $20k a year, then there's a significant difference in the financial status you're bringing to the relationship. If you plan for one to be a stay-at-home spouse or parent, then it wouldn't be fair (IMHO) to have a pre-nup that secured the assets of the higher earner to remain the property of the higher earner. However, if the plan is to have things fair, but one has no ambition, then from a solely financial advice standpoint, a pre-nup would be smart. However, if you both make $50k, and anticipate both having a similar income stream moving forward, then a pre-nup is fairly irrelevant.

What level of commitment they have: “We want to be together forever” is very different from “we are resolved to be together forever”. The societal outlook on this has changed over the years so you now have couples who approach marriage with both viewpoints, and there's a world of difference between the two. The first, I would recommend a pre-nup every time. Just make things simpler down the road. Cause, “we want to grow old together” won't make it to growing old together. However, when a couple has decided that they will grow old together come hell or high water, then I'd be less concerned. Yes, people in the 2nd group still get divorced, cause they find out their spouse wasn't as committed as they were, or other things change, etc., however the 2nd group as a much better chance at “forever” than the first.

What assets they have: If you're getting married and all you own is the shirt on your back, a $2,000 car, and a $50,000 student loan, then I wouldn't be nearly as concerned about a pre-nup as if you're getting married with a $500,000 investment account, $250,000 house, no debt, etc. etc. If you've got practically nothing to protect, no need to worry about protecting it.

What other commitments they have: This is the biggest one I wanted to highlight. If I had kids from a prior relationship, I would be more likely to consider a pre-nup to protect assets that belong in some way(s) to them, or at least to ensure that I had assets protected to provide for them in the future. Aside from kids, if I had other dependents or others whom I felt some financial commitment or obligation to, I would again feel more need for a pre-nup. It could be aging parents, or nieces and nephews whose parents would need financial assistance to care for them in the future, or a disabled sibling, or any number of other things.

So…there's various reasons, I think, that people would consider a pre-nup. Myself, I was raised by parents who married straight out of highschool and are still married. When my partner and I got together, I had a small amount of school loans and didn't even own a car. We're not legally married, but if/when we do get married, I'm not going to get a pre-nup. I make more money and probably always will, but I see what I make as shared income, and already put it into a joint account. I came into this relationship with nothing and see everything that is gained as shared. I'm also committed to it as a “forever” thing – not a “I want it forever”, but as a “We will make it be forever”. I'm rationale enough to know that there's statistically chances it won't be, but irrationally believe in the strength of our commitment. Regardless, it's a choice I've made knowing the risk.

But as taxgeek said: “Regardless of what I feel personally, as a professional, I would feel it my duty to help my client protect any premarital assets he or she may have.” My personal views may be such that I don't feel I need one, but I would advise a client to get one if they had any assets to protect.

[Stilgoin]

It really depends if you have something to protect. If you inherit your family’s money, it is your duty to protect that inheritance and use it to your best advantage. Losing that inheritance does not make you a good steward. You need it in writing. Everyone has good intentions, but any deal should be in writing. As accountants, we know we need a signed contract. 😉

Stilgoin, CPA

There are enough critics. Be an encourager

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[MaLoTu]

^ agree with stilgoin … It depends on what you have to protect. I don't think anyone goes into a marriage thinking it is going to fail, but some people have 1) been through it before or 2) are just more realistic and know divorce is a possibility. Mix that mindset with the control factor that most CPAs possess…

Almost always from my phone... please excuse my typos!

All 4 passed - 2016

CA CPA

[Spartans92]

It really depends on your upbringings etc and other factors. But my belief is that if you truly love someone it doesn't matter how much money you bring in and all. So with all these contracts and agreements between two married couple to me is just nonsense. My dad gives his whole paycheck to my mom and doesn't say a word about it.

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[Jdn9201]

It depends. I know my opinion on them has shifted over time. Growing up, I thought prenup's were generally bad. After all, why get married if you are already thinking about it not working out, and making it easier for you to get divorced? My parents have been married for 34 years and while I know things don't work out for some people, I think overall people should go into marriage with a determined mindset to make it last. That being said, now that I've been working for several years and have started to build some assets, it makes me think not about a divorce happening, but protecting what I've worked so hard to build. I also know multiple women who have gotten divorced (without prenup's) and have been ordered to pay their ex alimony. Even if I was close to marriage, I'd at least consider a prenup for myself. As far as advising clients – you are paid to look after the best interest of your client. Sure, they can take your recommendation and decide for themselves, but if they have a lot of assets, you'd be foolish not to advise them to get one.

BEC - 88 8/29/15
REG - 82 11/14/15
AUD - 83 1/8/16
FAR - 80 2/29/16

[Biff-1955-Tannen]

You're crazy if you don't get a prenup. I absolutely would never ever ever ever ever consider getting married without one. Somebody mentioned that you might consider one when you make a lot of money. I think it's even more pertinent when you don't make much money. Somebody making 200k a year will be much better off when they lose half their shit in a divorce than somebody that is already struggling to get by making 50k a year and they lose half of their shit.

Ya'll live in a fantasy world if you think you're going to stay together forever. Grandma and grandpa's generation of loyalty is far gone. I can't tell you how many times I've heard about my friends bringing married women home.

AUD - 93
BEC - 83
FAR - 83
REG - 84

Nobody calls me chicken

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[jeff]

This sums up Dave Ramsey's view on the topic:

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Skynet]

PRENUP!?

You guys are accountants. You know where to hide them money.

AUD - 90
BEC - 78
FAR - 84
REG - 87

World Domination Plan

Phase I : Pass CPA Exams - Complete
Phase II : Megan Fox - In Progress
Phase III : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
Phase IV : Form the new Charlie's Angels with Megan Fox, Scarlett Johansson, & Gal Gadot
Phase V : TBD

BEC : 78
REG : 87
FAR : 84
AUD : 90

World Domination Plan

Phase I : Pass CPA Exams - Complete
Phase II : Megan Fox - Initiated
Phase III : Bring back 8-Tracks
Phase IV : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
Phase V : TBA

[MaLoTu]

Biff – the only thing is that a premump will only safeguard what you have prior to the marriage. Anything obtained afterward I do not believe will be protected. I guess I could be wrong.

Almost always from my phone... please excuse my typos!

All 4 passed - 2016

CA CPA

[monikernc]

Let me offer a different perspective from a divorcee's point of view. Divorce requires even more cooperation than marriage and it is rare that you will get it under the circumstances. Having the decisions made in a period that is more harmonious and rational makes all the difference in the end. All is settled, with few exceptions, and it is cheaper and quicker to have it all resolved before any trouble starts.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
State of Colorado June 2020 - AICPA Ethics 93
Experience was the worst part of the journey for me. You?
If you want things to change you have to do something different.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Stilgoin]

Don’t be naive. There are many more situations that can occur besides divorce where you will regret not having a prenup. If you combine assets, and your spouse is sued, then you could potentially lose part of your assets.

A very good friend of mine married and they were so happy. I mentioned a pre-nup, he laughed at me and never broached the subject again. 5 years later his wife had a heart transplant and came out of surgery a completely different person. Her, under the influence of her family, took him for absolutely everything he had. He was left with one vehicle, a one bedroom rental and a ton of bills. There are soooo many more things that can happen besides just divorce.

Stilgoin, CPA

There are enough critics. Be an encourager

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[monikernc]

Malotu it can cover assets acquired during the marriage. All in the writing.

AUD - 93
BEC - 82
FAR - 76
REG - 88

How have you been?
Ninja book and MCQs and the forum, all first try! 2016
Licensed State of Montana April Fool’s Day 2020
State of Colorado June 2020 - AICPA Ethics 93
Experience was the worst part of the journey for me. You?
If you want things to change you have to do something different.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

I don't plan on my house burning down. Am I foolish to have insurance?

@Skynet (and the bodies)

[Author]

Replies