Definition - What does Prenuptial Agreement mean?
A prenuptial agreement is a contract made before a marriage between the future spouses. It outlines the division of assets in the event of a divorce. This kind of contract is made to protect individual assets from being treated like common assets and from being split equally between spouses.
Many states allow for prenups to be made, although they may not always be upheld. For example:
- Such an agreement will be considered null and void if either party breaches a set of terms that are outlined within the document. Such terms usually relate to the fault of the breakdown of marriage; a common condition or clause within a prenup will state that if either party is unfaithful, then they forfeit their rights under the agreement.
- A prenuptial agreement can be countered and ruled against in instances where it is proven to be signed under duress, that the person did not understand what they were signing, or that the terms were not equitable in light of all factors.
Justipedia explains Prenuptial Agreement
It is customary for one spouse to have their personal attorney draw up a draft prenuptial agreement. It is then reviewed by the other spouse's attorney. It is not a requirement that both parties have an attorney review it, although it is in the best interests of both parties to ensure that the document is fair.
A prenup can list more than the division of assets, such as the details of child custody. It is also important to note that such an agreement cannot "get rid of" child support. (Child support is the right of a child and the child is not a party to the contract.)