Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: Today’s question comes from Michelle. She writes: I met with an attorney to discuss the drawing up of a prenuptial agreement. My attorney said he has never incorporated an infidelity clause in any prenup he has drafted. What is the purpose – and what are the benefits – of an infidelity clause?
A: In today’s world, prenups are no longer stuffy or offensive. Instead, they’re widely recognized as practical, forward-thinking financial management tools…and kudos to you, Michelle, for recognizing that.
Your basic prenup will establish each spouse’s property rights and expectations in the event you go your separate ways. Sometimes, prenups contain provisions beyond clarifying what’s yours and mine. These are known as “lifestyle clauses.” The “infidelity clause” you mentioned falls in that category.
With an infidelity clause, if your spouse cheats, they can be ordered to pay a financial penalty if you divorce (one of the benefits to you if your spouse strays). Beyond that, infidelity clauses can be helpful in setting expectations for your relationship.
“With an infidelity clause, not only does the person requesting the clause make their feelings clear about possible infidelity, the proposal of this clause alone can force couples to communicate about what they want out of their relationship, how they will treat each other and how they will communicate their feelings. This exercise can be beneficial, no matter whether the clause is ever actually used,” Philadelphia divorce attorney Jennifer Brandt recently told HerMoney.
When it comes to infidelity clauses, there are a couple of caveats to be aware of. For starters, they aren’t enforceable in every state. One of the other issues experts raise is that it can be hard to define or prove infidelity. But, on the flip side, if you do have proof, experts say an infidelity clause can sometimes be effective simply because a cheating partner may not want the details aired in a public courtroom and therefore, they won’t challenge it.
MORE ON HERMONEY:
- Getting divorced may cost more than you think – how to financially prepare for splitting up
- Surviving The Squeeze: Why Corinne Low Got Divorced, Ditched Her Commute & Started Dating Women
- Divorce And The Stay-At-Home Mom: Tips For Moving Forward Financially
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