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# Love & Money: Why You Might Need a Prenup

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<!-- video src="https://cdn.jwplayer.com/manifests/mZsGDb4G.m3u8" -->
## Video: Love & Money: Why You Might Need a Prenup

[Watch (HLS stream): Love & Money: Why You Might Need a Prenup](https://cdn.jwplayer.com/manifests/mZsGDb4G.m3u8) (1:39)

![Love & Money: Why You Might Need a Prenup](https://cdn.jwplayer.com/v2/media/mZsGDb4G/poster.jpg?width=720)

_Published 2014-10-27. Prenuptial agreements aren't just for multimillionaires and celebrities. Money contributing editor Farnoosh Torabi explains._


---

Jul 27, 2023 5:20 PM UTC

---

## More From This Series

[All Videos](https://time.com/video/)

[Love & Money: Tips For Unmarried Homeowners](/video/zd0z3ov6/)

### Love & Money: Tips For Unmarried Homeowners

[Love & Money: What Are Your Relationship Dealbreakers?](/video/bLOmTpJe/)

### Love & Money: What Are Your Relationship Dealbreakers?

[Love & Money: Myths About Couples and Credit](/video/bxzh8jaw/)

### Love & Money: Myths About Couples and Credit

---


## Transcript

[ MUSIC ] It seems that the only time we hear about prenuptial agreements is when a celebrity marriage is on the rocks. But these contracts are not just for super rich. Many couples would be smart to create a prenuptial agreement. It's a legal document drafted prior to getting married that states how you and your spouse prefer to divvy up your assets in case you get divorced. Now prenups are becoming more popular as people get hitched later in life and enter marriage with more money at stake. In fact, almost two- thirds of divorce attorneys say they've seen an increase in prenups over the past three years.

These contracts are especially useful if you don't like your state's divorce laws. For example, if you break up in California and you don't have a prenup. You may have to split assets in half. That includes savings, investments, property, valuables, and even debt acquired during your marriage. Now most states base their divorce proceedings on what's known as equitable distribution. That's when a judge considers various criteria to rule who receives what. But if you wanna maintain control, a prenup or even a postnup. Which you can draft up during your marriage, will be essential. Another reason you might want to get a prenup is that you may want to set aside assets for your children from a previous marriage.

Or maybe you expect to receive a large inheritance or business earnings during your marriage. If you want to keep those funds separate, a pre- nup may be necessary to avoid conflict and a courtroom battle. Now whatever your reasons, remember that each partner should retain his or her own lawyer to review the agreement. For more love and money tips, check out my weekly column on Money. com. [ MUSIC ]

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