A prenuptial agreement, commonly called a “prenup,” is a contract entered into by two parties before marriage. A prenup can outline how assets, property, income, and debts will be divided if the marriage ends. In most states, including New Jersey and Pennsylvania, couples can use this document to decide:
- Property rights: How property will be owned or divided, whether it was purchased or acquired before or during the marriage
- Support: Whether spousal support will be paid, reduced, or waived (but prenups cannot contract to waive child support).
- Estate planning: How wills, trusts, or other documents will be set up (those documents need to be executed separately).
- Choice of law: Which state’s laws will apply if there is ever a dispute.
- Other agreements: Anything else the couple wants to include, which can range from how to handle future businesses to who gets the cats, as long as the agreement is not against public policy or illegal, in which case that part might not be enforced.
The Pros of Having a Prenup
- Prenups can give parties peace of mind and the ability to plan ahead. Instead of going through a contentious negotiation process or being subjected to unpredictable Court Orders, both parties can decide beforehand, from a place of mutual love and respect, how these matters will be settled if the time comes. The power rests with you and your partner when you are getting along, instead of with the Courts when you might not be.
- These documents can mean fewer arguments, especially about money.
- Having honest and sometimes difficult conversations about money and expectations early on strengthens communication in relationships.
Prenup Myths
- “A prenup means we’re destined to get a divorce or setting up for failure.”
Not at all. Prenups are about communication and fairness, not doom and gloom. Many parties who have prenups never have to use them, but it’s there in case the unexpected happens.
- “If we are happy and in love, we don’t need one.”
Even the strongest relationships benefit from planning. A prenup protects both partners, ensuring the focus stays on the love, not the logistics.
- “Signing a prenup isn’t romantic.”
Think of prenups as a way to set the stage for peace, clarity, and trust. Prepare your prenup well ahead of your wedding so you don’t have to worry about pulling focus.