Also known as premarital agreements, a prenuptial agreement is a marriage contract entered into prior to marriage. In a prenuptial agreement the parties can predict division of assets in the event that there is divorce. Prenuptial agreements create certainty and avoid expensive divorce proceedings.
A prenuptial agreement may discuss issues throughout the marriage and issues in the event the marriage should end. Issues during the marriage may include how couples will pay their separate and joint living expenses and the creation of estate planning documents such as wills and trusts. Issues after marriage can include the division of property and assets gained during the marriage, division of the liabilities incurred during the marriage, designation of each person’s separate property as non-marital, spousal support amounts in case of divorce, and life insurance rights.