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What is a Prenuptial?

A prenuptial agreement, often shortened to "prenup," is a legal agreement entered into by an engaged couple prior to being married. The prenuptial agreement provides for an agreed upon distribution of assets if the marriage ends in divorce. A similar agreement called a postnuptial agreement is signed after a couple is already married. Domestic partners may also have a cohabitation agreement.

A prenuptial agreement often has what is called a "sunset" clause. This usually means that the prenuptial agreement is invalid after a certain specified time period, or after the married couple has had a child. Sunset clauses vary from state to state. If the sunset clause is ignored the prenuptial agreement is void. Some couples then construct a postnuptial agreement to change the terms of the prenuptial agreement.

When couples marry and each have significant assets, a prenuptial agreement may be beneficial in keeping those assets divided in the event of the dissolution of the marriage. Couples who have children from previous marriages may also want to use a prenuptial agreement in order to protect assets for their children. In Hollywood, and among the wealthy, the prenuptial agreement is fairly standard fare.

Depending upon the type of prenuptial agreement, some may be contested during a divorce. Changing circumstances may make for different allocations of spousal or child support if a marriage ends. Most lawyers who specialize in these contracts try to make “airtight” prenups to protect their clients. However, many contentious divorces also include challenges of prenuptial agreements.

What is a Postnuptial?