A prenuptial agreement (prenup) is a contract between two people who are about to marry that outlines how their assets, debts, and financial matters will be handled during the marriage and in the event of divorce. Despite their reputation, prenups are not just for the wealthy—they're a practical financial planning tool for anyone entering marriage.
Prenups can address a wide range of financial matters, including division of property acquired before and during marriage, protection of a business or professional practice, responsibility for debts brought into the marriage, spousal support (alimony) terms, inheritance rights and estate planning considerations, and financial responsibilities during the marriage. However, prenups cannot determine child custody or child support—these matters are always decided based on the child's best interests at the time.
One of the biggest challenges with prenups is having the conversation. The best approach is to frame it as financial planning rather than planning for divorce. Discuss it early in the engagement—not the week before the wedding. Be open about your financial situation and concerns, listen to your partner's perspective, and approach the discussion as a team effort to protect both of you.
For a prenup to be enforceable, both parties must fully disclose their financial situation (assets, debts, and income), the agreement must be entered into voluntarily without coercion, both parties should have independent legal counsel (or knowingly waive that right), the terms must be substantively fair and not unconscionable, and the agreement must be executed properly according to state law.
Timing matters for enforceability. A prenup signed the night before the wedding may be challenged as coerced. Most attorneys recommend finalizing the agreement at least 30 days before the wedding. This gives both parties adequate time to review, negotiate, and consider the terms without the pressure of an imminent wedding date.
Some common provisions in prenups include identifying separate property (assets owned before marriage or received as gifts/inheritance) and specifying that it remains separate, establishing how income earned during the marriage will be treated, addressing what happens to jointly acquired property, setting terms for spousal support in case of divorce, and including sunset clauses that make the prenup expire after a certain number of years.
There are certain things a prenup cannot do or provisions that may make it unenforceable: it cannot encourage divorce or include 'lifestyle clauses' in most states, it cannot waive a party's right to child support, it cannot include terms that are unconscionable at the time of enforcement, and it cannot be based on incomplete or fraudulent financial disclosure.
Prenups should be reviewed and potentially updated periodically, especially after major life events like having children, significant changes in wealth, career changes, or relocation to a different state. An outdated prenup may not reflect current circumstances and could be challenged on that basis.
