Here's What Happens When You Don't Get a Prenup Before Marriage

They divorced. He took millions of dollars worth of assets with him but left her with much less. If you've heard the story from someone involved, you've come face to face with the consequences of a prenuptial agreement (prenup).

A prenup is a pre-marriage agreement that proposes special rules for distributing wealth should a couple divorce. A prenup can specify who gets a business, who must pay for debt, who pays alimony, and so on. They can favor one party over the other.

But prenups aren't inherently bad. In fact, they're more popular than ever. According to CDC data, of those married, about 15% report signing up for a prenup, five times more than in 2010. More and more people seem to be opting for prenups. Why is that?

Forfeiting the prenup puts your post-marriage assets under the control of local laws. Here's what happens when you don't get a prenup before marriage.

State law determines who gets what post-divorce

There are two state types: community property states and equitable distribution states. These operate under different playbooks that determine who gets what in the event of a divorce.

In community property states, things are straightforward. Assets and debts are typically distributed half and half. These states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

In equitable distribution states, things are more nuanced. To divide assets fairly, a judge considers factors like marriage duration and individual financial circumstances. All non-community property states are equitable distribution states.

What counts as "fair distribution" varies. For example, state law might split an inheritance, parcel out pieces of a business, or hold both parties equally responsible for debt. One party may end up with more assets than the other.

Benefits of getting a prenup

A prenup allows you to control who gets what in a divorce. You can draw clear guidelines by determining who owns a business, who gets what savings, and who takes the property. You can protect yourselves from inheriting each others' debts.

Divorce can be a long, drawn-out occasion. It took my parents months to complete the divorce. They spent tens of thousands of dollars on attorney fees, duking it out in court over everything from child custody to dusty old chinaware. A prenup can shorten divorce proceedings.

Divorce is expensive. The median cost of a divorce is $7,000, and attorneys get $100/hour on average. The shorter a divorce, the less you pay in attorney fees. A prenup may shrink costs, though it's worth remembering that a prenup typically costs at least $500 in most states.

A good prenup can simplify divorce proceedings, shrinking costs and diffusing tensions before they can fire up. However, both parties should consider consulting their attorneys before signing to ensure a fair agreement.

It's not too late after marriage

You can create a post-nupital agreement (postnup) after marriage. It serves the same purpose as a prenup: clarifying who gets what after marriage and simplifying divorce proceedings.

You can draw up an agreement by chatting with your partner and consulting an attorney. The more straightforward your arrangement, the more affordable this will be.

Prenups and postnups give couples control over their savings, property, and financial future. Plus, they can shrink the costs of divorce proceedings. To ensure fairness, consulting with an attorney before signing one is essential.