Prenuptial Agreement
What does "Prenuptial Agreement" mean in law?
A prenuptial agreement (also called an antenuptial or premarital agreement) is a contract entered into by two people before marriage that governs the division of property, spousal support, and other financial matters in the event of divorce or death. To be enforceable, most jurisdictions require that the agreement be in writing, signed voluntarily by both parties, and accompanied by full and fair disclosure of each party's assets and liabilities. Courts may refuse to enforce a prenuptial agreement if it was unconscionable at the time of execution or if one party was under duress, lacked independent counsel, or was not given adequate time to review the terms. The Uniform Premarital Agreement Act (UPAA), adopted in some form by a majority of states, provides a statutory framework for enforceability.
Definition
A prenuptial agreement (also called an antenuptial or premarital agreement) is a contract entered into by two people before marriage that governs the division of property, spousal support, and other financial matters in the event of divorce or death. To be enforceable, most jurisdictions require that the agreement be in writing, signed voluntarily by both parties, and accompanied by full and fair disclosure of each party's assets and liabilities. Courts may refuse to enforce a prenuptial agreement if it was unconscionable at the time of execution or if one party was under duress, lacked independent counsel, or was not given adequate time to review the terms. The Uniform Premarital Agreement Act (UPAA), adopted in some form by a majority of states, provides a statutory framework for enforceability.
Example
Before their wedding, both parties signed a prenuptial agreement with the advice of independent attorneys providing that the husband's pre-existing tech company would remain his separate property in the event of divorce, shielding it from equitable distribution.