Legal Definitions - antenuptial (prenuptial) agreement

An antenuptial agreement (more commonly known as a prenuptial agreement or "prenup") is a legally binding contract created by two individuals before they get married. This agreement outlines how their assets, debts, and financial responsibilities will be managed during their marriage and, crucially, how they would be divided if the marriage were to end through divorce or death. Its primary purpose is to provide clarity and certainty regarding financial matters, often protecting pre-marital property, future inheritances, or business interests for one or both parties, and can also define spousal support arrangements.

Here are some examples of situations where an antenuptial agreement might be used:

• Protecting a Family Business: Sarah owns a successful, multi-generational family business that she inherited and has been running for years. She is marrying John, who works in a different industry. Sarah might want an antenuptial agreement to ensure that her ownership stake and the future value of the family business remain her separate property, even if the marriage dissolves. This agreement would clarify that John would not have a claim to her business assets, which she accumulated entirely before their marriage and are part of her family's legacy.

• Preserving Inheritance for Children from a Previous Marriage: Robert, a widower with three adult children, is planning to marry Lisa. Robert has a substantial investment portfolio and a family home that he intends for his children to inherit. Robert and Lisa could enter into an antenuptial agreement specifying that these pre-marital assets, and any future inheritances Robert might receive, would remain his separate property and ultimately pass to his children, regardless of the marriage's duration or outcome. This protects his children's future inheritance without impacting Lisa's financial security during the marriage.

• Managing Significant Debt and Future Earnings: Emily is a recent medical school graduate with substantial student loan debt, while her fiancé, David, has no debt and a well-established career. They anticipate Emily will earn a very high income once she becomes a practicing doctor. They might use an antenuptial agreement to define how Emily's pre-marital student loan debt will be handled during the marriage, perhaps specifying it remains her individual responsibility. Additionally, they could agree on how future earnings, especially Emily's potentially high income, would be treated – whether they become entirely marital property or if a portion remains separate – providing a clear financial framework for their future together and addressing potential concerns about debt liability.