Answers to common questions about prenups for couples planning to marry.

Prenuptial agreements, sometimes simply called prenups, are not just for wealthy people. Couples from all walks of life use prenups to create an understanding of how they’ll handle finances as a married couple and what happens if they get divorced.

What is a prenup?

A prenuptial agreement is a legally binding contract signed by both members of a couple before they get married.

Prenups are individualized for each couple but most cover:

• Ownership of property and assets (like homes, savings accounts and investments) held before the marriage.
• If there are children from prior relationships, prenups also include how property gets passed on.
• How future bills will be handled.
• Responsibility for debt, like student loans or medical bills.
• What happens if the couple divorces. This can include spousal support and how property will be divided

Is a prenup a good idea?

Only you and your beloved can decide if a prenuptial agreement is a good idea for you. However, it’s worthwhile for all couples to talk about how they’ll handle finances as a married couple and what they desire for their heirs.

A prenup isn’t legally required for couples. If you don’t have one and the marriage ends in divorce, state law will apply to the division of property and any award of spousal support.

When should you do a prenup?

Creating a prenup requires thoughtful consideration by both partners. Some experts advise couples to start talking about a prenup at least six months before their wedding. In any case, discussion about finances and property should start soon after engagement.

How do you write a valid prenup?

To be considered legally valid, a prenuptial agreement needs to be fair to both partners. Each partner should have their own attorney review the document to ensure the agreement meets state requirements for prenups and covers all pertinent financial considerations.

Many couples draft their initial prenuptial agreement using a template (many are found online) to help guide their discussion. After they work on the initial draft of the agreement, each person has their attorney review it and offer advice before signing.

If you don’t know how to begin talking to your partner about finances, read Money Issues That Concern Married Couples.

 

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