Money and marriage don’t always mix smoothly, which is why prenuptial and postnuptial agreements exist. Knowing the basics can help you determine if one of these agreements is suitable for your relationship.
These legal contracts outline how assets, debts, and financial responsibilities will be handled in the event of divorce or death. While they can be valuable planning tools, many couples misunderstand their purpose or assume they’re only for the wealthy.
What Is a Prenup?
A prenuptial agreement, or prenup, is signed before marriage. It outlines how property, income, and debts will be divided in the event of a relationship ending. Prenuptial agreements are often used to protect assets one spouse brings into the marriage, safeguard family inheritances, or establish financial expectations from the start.
The primary advantage of a prenuptial agreement (prenup) is clarity. Couples avoid future conflicts by deciding financial matters in advance. Critics sometimes view them as unromantic, but many find the peace of mind worth it. On the downside, prenups can feel one-sided if not negotiated fairly, and courts may strike them down if they’re overly harsh or improperly executed.
If you’re thinking about long-term planning, take a look at Prenatal Planning: Setting Up Guardianship Before Baby Arrives.
What Is a Postnup?
A postnuptial agreement, or postnup, is created after a couple is already married. The terms are similar to a prenup, but it’s often used when financial situations change, such as starting a business, receiving a large inheritance, or resolving money conflicts that arise during marriage.
A postnup can be a way to strengthen a marriage by addressing financial stress. Like prenups, they must be entered into voluntarily and with full disclosure of finances. A drawback is that postnups may face more scrutiny in court, since they’re signed after vows are exchanged, and one spouse could argue coercion.
Common Myths About Prenups and Postnups
One common myth is that these agreements are only for millionaires. In reality, anyone with assets, debts, or children from a prior relationship may benefit. Another myth is that signing one means you’re planning for divorce. In truth, they’re about setting expectations and protecting both partners, much like insurance.
Some also believe prenups and postnups can resolve every issue in a divorce. They cannot override child custody or support laws, which remain under the authority of the court. These agreements primarily concern property and finances, rather than parenting.
See Child Custody Basics Explained for Non-Lawyers for a deeper look at how custody laws actually work.
Should You Consider One?
If you or your spouse have significant assets, own a business, or want to protect your children from a previous relationship, a prenuptial agreement (prenup) or postnuptial agreement (postnup) could make sense. They aren’t for everyone, but they can reduce uncertainty, protect family property, and even reduce legal costs if divorce occurs.
Having an honest discussion about finances before or during marriage can be difficult, but it often strengthens trust. If you decide to move forward, working with an experienced family law attorney ensures the agreement is fair, valid, and enforceable.
If family wealth is a concern, see How to Protect Inheritance Rights for Your Children.
The Bottom Line
Prenuptial and postnuptial agreements aren’t about predicting failure; they’re about creating financial clarity and protecting both partners. By addressing financial matters upfront, couples can reduce conflict, strengthen trust, and ensure their assets are managed fairly, regardless of what the future holds.
