Prenuptial Agreements - An Overview
by Shae Irving & Katherine E. Stoner, Attorney-Mediator
What you need to know if you're considering a prenuptial, or premarital, agreement.
A prenuptial agreement ("prenup" for short) is a written contract created by two people before they are married. A prenup typically lists all of the property each person owns (as well as any debts) and specifies what each person's property rights will be after the marriage.
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| Terminology | In some states, a prenuptial agreement is known as an "antenuptial agreement," or in more modern terms, a "premarital agreement." Sometimes the word "contract" is substituted for "agreement," as in "prenuptial contract." An agreement made during marriage, rather than before, is known as a "postnuptial," "postmarital," or "marital" agreement. |
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Who Needs a Prenup?
Contrary to popular opinion, prenups are not just for the rich. While prenups are often used to protect the assets of a wealthy fiancé, couples of more modest means are increasingly turning to them for their own purposes. For example, a marrying couple with children from prior marriages may use a prenup to spell out what will happen to their property when they die, so that they can pass on separate property to their children and still provide for each other, if necessary. Without a prenup, a surviving spouse might have the right to claim a large portion of the other spouse's property, leaving much less for the kids.
Couples with or without children, wealthy or not, may simply want to clarify their financial rights and responsibilities during marriage. Or they may want to avoid potential arguments if they ever divorce, by specifying in advance how their property will be divided, and whether or not either spouse will receive alimony. (A few states won't allow a spouse to give up the right to alimony, however, and, in most others, a waiver of alimony will be scrutinized heavily and won't be enforced if the spouse who is giving up alimony didn't have a lawyer.) Prenups can also be used to protect spouses from each other's debts, and they may address a multitude of other issues as well.
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