What can you and your partner spend $8,000 dollars on? Perhaps an amazing honeymoon to the Amalfi Coast or filling your new home with beautiful furniture? Well, for $8k, according to our 2024 survey of family law attorneys, that's the average cost of a prenup these days. That's a pretty hefty price tag. Spoiler alert: HelloPrenup offers a much cheaper option to get a prenup ($599). And while prenups are becoming more common, many couples are still unsure about the costs associated with drafting and enforcing these agreements. Depending on which route you go to get a prenup (using HelloPrenup or an attorney), the cost may differ. In this blog, we will explore the various costs associated with prenups and discuss how to minimize them.

Cost of drafting the prenup

Did you know that the average prenup costs $8,000 per couple, according to one of our surveys to family law attorneys across the states? The price can vary dramatically depending on a bunch of different factors, such as where you live and who you hire.

Factors that Influence Prenup Costs:

• Method of drafting: DIY platforms like HelloPrenup offer fixed fees ($599). Whereas, according to a HelloPrenup survey of family law attorneys, a prenup from a lawyer and not HelloPrenup costs an average of $8,000 per couple, with pricing influenced by location, experience, and billing methods (hourly vs. flat rate).
• Complexity of agreement: The more intricate your financial circumstances and specific requests within the prenup, the higher the potential cost. Consider this: you own 13 businesses, have millions in assets, and a sizable trust fund. Additionally, you want custom clauses that include property distribution schedules and alimony provisions tailored to your unique net worth at the time of potential divorce. In this example, due to the complexity of your finances and specific custom requests, a lawyer will likely need more time to craft your prenup compared to an individual with minimal assets and straightforward prenup goals.
• Negotiations: If you are going the route of hiring attorneys to draft and negotiate the agreement for you, then this can increase the cost if negotiations take a while. Going back and forth between attorneys takes the attorney's time. Time = money!
• Geolocation: A prenup in Tulsa is going to be much more affordable than a prenup in Manhattan. The cost of living affects attorneys' rates and how much they charge. However, the HelloPrenup price stays the same regardless of where you live!
• Experience of the attorney: Hiring a veteran prenup attorney versus a new grad, fresh out of law school, likely has pricing differences.

Cost of reviewing an existing prenup

For example, let's say your spouse came to you with a prenup, and now you need your own attorney to review that prenup. The good news? That generally costs less money than hiring an attorney to draft a prenup from scratch. Why? Because the attorney doesn't have to charge you hourly to draft the agreement. The cost of reviewing an existing prenup will vary from lawyer to lawyer and depend on the state you're in. It will also depend on how complex your needs are and what the agreement says. For example, let's say the prenup makes total sense for you, and you only need to make one tiny change. This is going to cost you much less than if the prenup needs to be totally redlined and 20+ edits need to be made from your end.

Cost of enforcing the prenup in court

We hope you don't need to ever enforce your prenup (because that means you're getting a divorce), but if you do, there may be a cost to fight to enforce your prenup if your partner challenges its validity. If your partner does not challenge its validity, then you two can privately agree to follow the terms of the agreement, and there's no extra charge to simply follow the terms that you agreed to. Plus, it is not very common for you to make it to the point of a litigated divorce trial, as that takes a lot of time and money, and most people will decide to settle before it gets to that point. However, if you do make it to the litigated divorce trial to enforce your prenup, there are lots of miscellaneous expenses involved. Let's break down the costs of enforcing a prenup in a litigated divorce trial:

1. Legal Fees: Both sides will have to pay for the services of their own attorneys (unless stipulated otherwise). The legal fees can be substantial, especially if the case goes to trial.
2. Court Fees: There are fees associated with filing a lawsuit and going to court, such as filing fees, service of process fees, and fees for experts or witnesses.
3. Discovery Costs: During the discovery process, both sides will have to gather evidence to support their case. This can include document production, depositions, and expert witness testimony. These costs can be high.
4. Appraisal Costs: If the prenup involves the division of real property or other assets, it may be necessary to hire appraisers to determine the value of the assets. Depending on the asset, this could get costly. For example, if you have various different real estate properties, multiple cars, jewelry, and antiques, you may have to get several appraisers.
5. Mediation or Arbitration Costs: In some cases, the couple may choose to go through mediation or arbitration to resolve disputes rather than go to court. These processes can be less expensive than a court battle, but they still have costs associated with them.

Will my prenup cost more if I have a lot of assets?

The short answer is yes if you are using the traditional attorney route. This is because the more assets you have, the more financial statements that your lawyer has to sift through. For example, if you have a trust fund, some trusts are hundreds of pages long. The lawyer may need to read through some of that to get a full understanding of the asset. More attorney time = more money. Remember, attorneys typically bill hourly. The average prenup for one person, according to Business Insider, is $2,500 on average, but this number creeps up to $10,000+ for more assets, more negotiations, more requests, etc. That means you could be looking at $10k or more for a prenup when you go the traditional route of using attorneys and have a lot of assets. With HelloPrenup, the number of assets you have has no effect on the cost. The cost is the same whether you have $1 or $1,000,000 dollars.

How much money justifies a prenup?

There's no required amount of money that someone needs to have to "justify" getting a prenup. This is because prenups can do a lot. For one, prenups can protect future assets that you don't have yet. If you are expecting a future inheritance or maybe just hope to make money one day, a prenup can be justified because it's protecting money you don't have yet. For two, prenups can cover other topics besides just protecting property, such as alimony, debt, taxes, death, insurance, confidentiality, and even pets. For instance, maybe you want to protect yourself from your partner's staggering student loan debt, or maybe you want to ensure that you receive health insurance in the event of a divorce. Whatever the case may be, there's more to a prenup than just protecting assets. The bottom line? Whether you have $5 or $5,000,000, a prenup is justified.

Managing prenup costs: Tips for savings

Don't let legal costs break the bank! Here are some ways to create a prenuptial agreement without breaking your budget:

1. DIY Platforms:

• Consider services like HelloPrenup, offering fixed-cost prenups ($599) and fixed-rate attorney services. This is usually cheaper than traditional attorney routes.

2. Seek Flat-Fee Lawyers:

• Some attorneys offer flat-rate packages for drafting prenups (such as the attorneys available through HelloPrenup), potentially saving you money compared to hourly billing.
• Attorney hourly fees vary widely ($100-$1000+/hour), so shop around for the best rate.

3. Keep it Simple:

• A straightforward prenup reduces the attorney's drafting time, meaning lower costs for you.
• Minimize negotiations – fewer billable hours equal more savings.

4. Opt for Mediation:

• Mediation is often cheaper than going to court, as you may only have to split the mediator's hourly rate.
• Include a mediation clause in your prenup, requiring mediation before any court filings.

The bottom line on prenup costs

In conclusion, prenups can be super helpful to many different people. However, there are costs associated with drafting and enforcing these agreements. The cost of drafting a prenup, on average, is $8,000 per couple, while the cost of enforcing a prenup can range greatly. To minimize the costs associated with prenups, couples can choose a lawyer who charges a flat fee, negotiate a simple and straightforward prenup, and choose to mediate their prenup rather than go to court. It's important to consider these costs when deciding whether to enter into a prenup.