What is a Prenup and Why Do You Need it?

What is a prenup? who needs one?

WHO NEEDS A PRENUP?

A prenup is an especially wise move for guys who own their own businesses, have substantial assets such as houses or large stock portfolios, stand to come into an inheritance from a relative or have children from a previous marriage or union.

It’s also a good idea if one of you is substantially wealthier than the other. See: Paul McCartney. Without a prenup before tying the knot, the Beatle had to fork over £25 million (that’s $50 million to us Yanks!) to ex-wife Heather Mills. And keep in mind that British courts typically award about one-third of a nest egg to the opposing spouse, but American courts often award up to half.

NEXT: Are Prenups Only For Rich People?