If You’re Broke, Do You Still Need a Prenup Before Marriage? Suze Orman Says Yes

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Divorce is rampant in the U.S., and heartbreaking as it may be on a personal level, it can also be a financial devastation for one or even both parties involved.

This is one of the reasons why Americans, no matter their financial status, should get a prenup before getting married. Finance guru Suze Orman is a big believer in this approach — chiefly because a prenup, when executed correctly, can help you not be held accountable for taking on your spouse’s debt during the marriage in the event of divorce.

But there are other reasons to draw up a prenup before you get married, even if you’re both broke. Here’s what finance experts, legal experts and even therapists have to say.

There’s a Strong Argument for Getting a Prenup When Poor

If you think you don’t have enough wealth to warrant a prenup, think again. The less you go into a marriage with, the more important, arguably, it is to protect yourself with this legally binding contract.

“It is actually more important to get a prenup if you are making less money or have fewer assets but will be doing unpaid care labor,” said Lacy Garcia, founder and CEO at Trust Willow. “We have a lot of clients who are in a position where they were the primary caregiver and made less money, but do not have a prenup and are now not getting the alimony they need.”

A Prenup Makes Managing Pre-Existing Debts Clearer and Simpler

Money matters, including pre-existing debts, can stir up big trouble in even a happy marriage. A prenup helps out here.

“A prenup can help individuals clarify responsibilities surrounding the repayment of debts, which can help prevent friction in the relationship,” said Barbie Adler, president and founder at Selective Search. “It can also be seen as a gesture of good faith, demonstrating that one partner is committed to not burdening the other with personal debts.”

Prenups Can Help With Keeping Divorce Amicable and Budget-Friendly

Divorces can get hairy, and often emotions are on fire while stress is high. A prenup can help dial down some of the chaos that you would face if you didn’t have one in place. By having the financial details squared away ahead of time, the process of separation can go more smoothly.

“[A prenup] allows [you] to choose to divorce respectfully,” said Tracy Moore-Grant of Amicable Divorce Network. “Divorces still occur 50% of the time, and a prenup will allow the parties to decide to pursue mediation or an amicable divorce should things not work out.”

In this regard, prenups can also help reduce the cost of going to trial, which is typically far more expensive than working out the separation in mediation.

A Prenup Takes the Guesswork Out of Divorce

When divorce is on your horizon, you may have a lot of financial questions and concerns — unless you signed a prenup, which takes the guesswork out of a divorce.

“A major piece of a divorce is determining what assets and debts people had at the time of marriage and can take months or more to sort out,” Moore-Grant said. “A prenuptial agreement will list these items and their value, cutting down on any future legal bills.”

A Prenup Protects Your Future Income Earning Capacity

You may not be rich when you enter a marriage, but you could get rich during it. You should always be aiming to build wealth, and having a prenup in place helps you keep that goal manageable with or without a spouse.

“While you may not be rich yet, that doesn’t mean you don’t have the potential to have wealth in the future,” said Kristyn Carmichael, professional mediator, family attorney and certified divorce financial analyst at Couples Solutions Center. “Imagine you are a doctor-to-be in residence or in med school. While you don’t really have income now, you could protect your income in the future.”

A Prenup Protects Your Children

“Sometimes, when a couple marries, they may already have their own children outside of this marriage,” Carmichael said. “Even if they have not amassed wealth, a prenup protects their children’s right to the assets they have.”

A Prenup Helps Shelter You From Your State’s Rigid Laws

If you don’t want your divorce chained to all the laws your state may impose on the process, get a prenup!

“The reality is that everyone has a ‘prenup,’ also known as the state law in which they get a divorce,” Carmichael said. “The state has dictated how you are going to separate your assets and what is fair if you divorce. A prenup gives you the opportunity to take back control and determine what you believe is fair rather than what the state believes is fair.”

A Prenup Fosters a Financially Healthy and Communicative Relationship

Some couples may shy away from bringing up a prenup when they get engaged, and fairly so. It can be a buzzkill and make you self-conscious that you care more about money than love. But talking about getting a prenup and deciding to move forward with it can actually help you build a financially stronger relationship.

“One reason to establish a prenup is it gets couples talking about money before they commit to marriage,” said Hannah Yang, Psy.D., founder, CEO and licensed psychologist at Balanced Awakening. “It’s an opportunity for transparency in the realm of finances that may help to fend off or lessen future conflicts around money. In the process of discussing their needs or preference for a prenup, they are building their relational and conversational repertoire for talking about money and their feelings about it.”

A Prenup Can Possibly Lower Your Chance of Divorce

One pretty cool thing about prenups is that they can actually prevent your marriage from falling apart.

“While there are not a lot of studies that have been completed, one study found that creating a collaborative prenuptial agreement in mediation lowers your chance of divorce,” Carmichael said. “This is an important distinction. Most people complete a prenup where one spouse has their attorney draft it, they hand it to the other spouse for review, and then it is signed. This process is not shown to increase or decrease divorce rate.

“But if a couple completes the prenuptial agreement together in a mutual process, such as mediation, divorce rates lower.”

How Much Does a Prenup Cost?

“On average, a prenup should cost between $1,500 and $4,000,” said Garcia.

That may not be cheap, but it could surely save you a lot of money and stress if the marriage doesn’t work out.

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