Prenuptial agreements, often referred to as “prenups,” are contracts entered into by couples prior to marriage. Postnuptial agreements, also known as postnups, are similar except they are entered into by couples after marriage. Both agreements are used to protect assets brought into the marriage by one or both spouses in the event the couple should divorce. A thorough and carefully considered prenuptial agreement will reduce the stress and expense associated with a contentious divorce since many issues will be addressed within the agreement.
While not every couple needs a prenup, they may be especially helpful if either you or your future spouse have extensive assets, an ownership interest in a family business, or children from previous relationships. Prenuptial agreements can also be used to clarify how you intend to distribute your assets upon your death.
It is not always easy to broach the subject of entering into a prenuptial agreement with your future spouse. However, having such a discussion and predetermining how your assets will be divided in the event of a divorce may actually strengthen your relationship.
