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Prenuptial Agreement

Definition

A legal contract entered into before marriage that specifies how assets and debts will be divided if the marriage ends.

What to consider

  • Discuss it thoroughly with your partner to ensure mutual understanding.
  • Consult legal counsel to craft a fair agreement.
  • Review it periodically, especially after major life changes.

Real world scenarios

  • Before getting married, Chloe and Ryan signed a prenuptial agreement to ensure that each retained control over their separate assets.

Related terms

Conservatorship
Will
Chapter 7 Bankruptcy
Car Title
Inheritance Tax

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