A prenuptial agreement, also called a prenup (or an antenuptial agreement), is a contract between two people contemplating marriage to each other. The standard prenup focuses on how the couple’s assets will be distributed in the event of divorce. Prenups are commonly used where one party enters the marriage with significantly more assets than the other and wishes to retain those assets in the event of a divorce. A prenup may also be helpful where one party expects a large sum of money in the future and the other party did not contribute to that expectation. Finally, a prenup may help protect one party’s interest in the other party’s future revenue-generating potential.
To be valid, each party to the prenup must fully disclose all assets before signing the prenup, be represented by independent legal counsel (or knowingly waive their right to independent counsel), and most importantly, not be under duress or undue influence. To ensure fairness and to adhere to an absence of undue influence, or perception thereof, it is best to have the prenup signed long before the wedding date.