Legal Definitions - pre-dup

The term "pre-dup" is an informal, colloquial shorthand for a contractual agreement similar to a prenuptial agreement, but specifically designed for individuals who are planning to register as domestic partners rather than marry.

Essentially, a pre-dup is a written contract entered into by two people before they formalize their relationship as domestic partners. Its primary purpose is to define and clarify the financial and property rights and responsibilities of each partner during the partnership and, crucially, in the event the partnership dissolves. This can include provisions for separate property, shared assets, debt allocation, and spousal support, providing clarity and potentially avoiding disputes should the relationship end.

Here are some examples of how a pre-dup might be used:

• Protecting Individual Assets: Sarah owns a successful small business and a vacation home from before she met Emily. Emily has a substantial investment portfolio. As they prepare to register as domestic partners, they decide to create a pre-dup. This agreement specifies that Sarah's business and vacation home, and Emily's investment portfolio, will remain their separate property, even if they commingle some finances during their partnership. It also outlines how any assets acquired during the partnership, such as a new jointly purchased car, would be divided if they separate.

  This illustrates how a pre-dup allows individuals entering a domestic partnership to protect assets they owned individually prior to the partnership, ensuring clarity on what remains separate property.

• Managing Future Financial Responsibilities: Michael and David are planning to register as domestic partners. Michael has significant student loan debt, while David has none. They want to ensure that if their partnership ends, David will not be held responsible for Michael's pre-existing student loans, and vice-versa for any future individual debts. Their pre-dup explicitly states that each partner is solely responsible for their own pre-existing debts and any debts they incur individually during the partnership, unless explicitly agreed otherwise in writing for a joint debt.

  This demonstrates how a pre-dup can proactively define financial responsibilities and protect one partner from being liable for the other's individual debts, both pre-existing and future, within a domestic partnership.

• Clarifying Support and Property Division: Alex and Ben have been together for years and decide to register as domestic partners. Alex is a high-earning executive, while Ben is a freelance artist with a fluctuating income. They want to establish clear terms regarding potential financial support for Ben if the partnership were to end, and how their jointly owned apartment and shared savings would be divided. Their pre-dup outlines a formula for potential support payments based on the length of the partnership and specifies the agreed-upon division of their shared property, providing a predictable framework for a potential separation.

  This example highlights how a pre-dup can pre-determine terms for financial support and the division of jointly acquired assets, offering a structured approach to potential dissolution of a domestic partnership and reducing future conflict.