Your property will be divided according to state law

Without a prenup, property division will be determined by your state laws. Depending on your state, your property will either be divided under community property principles or equitable distribution principles. Nine states utilize community property laws (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), and the rest are equitable distribution laws.

Community property laws generally say that your assets acquired during the marriage are split 50-50 with little to no exceptions. Assets you owned prior are separate. Sometimes, the appreciation of the pre-marital asset is also separate, but it depends. For example, if you start a business in a community property state without any input or help from your spouse, they are likely entitled to 50% regardless of their contributions towards it.

Equitable distribution states, on the other hand, divide assets according to what is fair, not necessarily what is equal. In these states, a list of factors helps a judge determine how to divide property, such as each spouse's contributions, age, health, and so on. This may result in a 50-50 split or another split (40-60, 30-70, etc.).

As you can see, there can be a lot of uncertainty if you live in an equitable distribution state. In community property states, you may not be okay with a 50-50 split. So, if you like certainty and making your own rules for your property division, you should consider a prenup.

Spousal support may or may not be required

Spousal support (a.k.a., alimony) is financial support paid from one ex-spouse to the other either during the divorce proceedings or for a period of time after the divorce is finalized (sometimes forever). Spousal support is dictated by state laws. Generally, each state has statutory requirements for when spousal support is appropriate and a formula for determining how much spousal support should be awarded.

If this sounds scary or the uncertainty feels like too much, you both should consider a prenup to make your own rules. In a prenup, you may be able to waive spousal support altogether—meaning neither spouse is required to pay it in the event of a divorce. In fact, In most states, you can address spousal support in your prenuptial agreement. However, four states do not allow it (South Dakota, Mississippi, Iowa, and New Mexico).

One spouse may be on the hook for their partner’s debt

Without a prenup, one spouse could be on the hook for their partner’s debt even if their name isn’t on it. Yes, that’s right. One partner can potentially take out debt without the other ever knowing about it and then could be responsible for paying back a portion of that debt in a divorce. Scary!

With a prenup, you both can ensure that debt in one person’s name stays with that person, and all of the debt correlated to their separate property stays their separate property. For example, if one of you owns a business, you can use a prenup to say all of that business debt is also theirs. You may lose custody of your pet or be required to share custody

If either of you own a pet, you know how scary it can be to think of losing custody of them or being required to share them with your ex. There are a handful of states that, even without a prenup, will analyze your situation and award custody of the pet based on the animal’s well-being. However, the vast majority of states say that pets are property and will be divided according to property ownership principles, such as who purchased it.

With a prenup, you can include pet clauses that state who is responsible for the pet’s bills, like vet costs, food, etc., and you can also state who has custody of the animal in the event of a divorce.

Lengthier and more expensive divorce

Without a prenup, you both will need to negotiate property division, debt allocation, spousal support, and other issues during a divorce. This takes time, takes your attorneys’ time, and ultimately costs money.

On the other hand, determining property division, spousal support, debt, pet custody, and other matters in a prenup can make a divorce much quicker and cheaper. It removes the need to “argue” over these topics and allows you to go straight into child custody/support matters or other outstanding issues in the divorce.

Not signing a prenup means a potential outcome you disagree with

You both have the power to decide your fate with a prenup! A prenup can override state laws. Without it, your hands are tied, and you both are “forced” to follow the laws of your state regarding property division, debt, and spousal support. Either of you may end up paying for debt that you weren’t a part of or giving up half of your business to a future ex. Or even worse—losing custody of pets. These are all things that could be avoided via a prenup. Take your power back and consider a prenup!

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