PRENUPS: ATTORNEY OR MEDIATOR?

Some couples are reluctant to enter into a prenup agreement simply because of the cost to hire an attorney.

Traditionally, prenups protect premarital assets, safeguard against partner debts, and simplify separation. Today’s prenups, however, are entered into less due to anticipation of separation, but more like business and estate planning.

Prenup Mediation is a less stressful alternative to typical prenuptial agreements. Instead of meeting with opposing attorneys in a confrontational negotiation, in Prenup Mediation couples with a single mediator to establish their mutual expectations for the outcome.

Usually in Prenup Mediation the parties disclose all assets and debts. The mediator then facilitates a discussion of topics of concern to either or both parties. Parties may bring up issues that would not necessarily be considered in an attorney-led negotiation, including how to deal with mutual friends and extended families, workplace issues, social media issues, child rearing, custody of pets, and anything of concern to either partIcipants.

From there they develop a memorandum of understanding. Couples may then have an attorney draft the final agreement. Individuals should have their own attorneys review the any documents. In some circumstances, some states may require review by the parties’ attorneys.

The advantages of Prenup Mediation is that the process itself focuses on cooperation and shared goals, rather than adversarial relationships. And most importantly, rather than a standard “cookie-cutter” legal template, couples develop their own unique agreement that truly addresses any issues of importance to them. Plus, It’s significantly less expensive.

Because of the cooperative approach of Prenup Mediation, it is not appropriate if one party is hiding assets or debts or if there is a significant power imbalance between the parties, such as when one party is acting out of fear of some sort of retribution, if there is no agreement.

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Fred Jandt is the author of several books, including his latest, “How To Survive a Mediation.”