A prenuptial agreement, commonly known as a prenup or premarital agreement, is a written contract.
The agreement is a legally binding contract signed by a couple before marriage, specifying how their assets, debts, and/or spousal support will be handled in the event of divorce or death.
It aims to protect each party’s financial interests and outline the terms of property division and support/alimony.
The agreement is entered into by a couple before marriage or a civil union that enables them to select and control many of the legal rights they acquire upon marrying. It also establishes what happens if their marriage eventually ends, either in death or divorce.
When to Initiate a Premarital Agreement
You should sign a prenuptial agreement before the marriage because by definition a premarital agreement means it is entered into before marriage.
As you are considering marriage, consider entering into a prenuptial agreement early as there may be legal consequences for signing a prenup too close to your wedding.
Some people learn more about prenups after their wedding.
They ask if they can enter into a prenup after marriage. The short answer is no. However, in certain instances, a post-nuptial, meaning after the marriage agreement, may be appropriate.
How do you know if you should sign a prenup?
If your or your soon-to-be new spouse has substantial assets (financial assets, like a business 401K or investment accounts or physical assets, like cars, boats, or real estate) going into a marriage, you want to consider a prenuptial agreement to ensure that those assets and any income derived from those assets remain separate from the marital estate.
Cooper Levenson is a full-service law firm established in 1957. Cynthia N. Grob, Esq., a partner with nearly 20 years of experience in family law, can be reached at cgrob@cooperlevenson.com or by calling 856-857-5538. Visit https://blog.cooperlevenson.com/ to read our blog.
