A prenuptial agreement, which is commonly referred to as a “prenup,” is a legal contract that may be entered into by two people before they get married or enter into a civil partnership. This agreement outlines the distribution of assets and liabilities in the event of a divorce or separation.

While prenuptial agreements may be used by any couple, they can be especially beneficial for couples with a high net worth. Understanding the various ways that a prenup may be used and what protections it can provide is crucial in cases where either party owns significant assets or earns a substantial income. An attorney can help couples in these situations understand how a prenuptial agreement may be used and how to make sure the terms of their agreement will be enforceable should their relationship break down in the future.

Protecting Separate Property

Couples with significant assets often have acquired them individually before getting married. A prenuptial agreement allows each party to protect their respective separate property. This includes any property owned prior to the marriage that either spouse will want to keep in the event of a divorce. Inheritances received during the marriage, or gifts specifically designated for one spouse are also considered separate property.