Prenuptial Agreement (Prenup)

A prenuptial agreement, commonly referred to as a prenup, is a legal contract entered into by two individuals before they marry. The purpose of a prenup is to outline the ownership of Assets and financial responsibilities in the event of a divorce or separation. It can also include provisions for spousal support and the division of property acquired during the marriage.

For example, if one partner owns a business prior to marriage, a prenup can specify that the business remains the sole property of that partner, protecting it from division in case of divorce. Additionally, a prenup can address debts incurred by either party, ensuring that one partner is not held responsible for the other’s financial obligations.

In case law, in In re Marriage of Pendleton and Stutz, the court upheld the validity of a prenup that provided a clear division of Assets, demonstrating the enforceability of such agreements when they are created transparently and with full disclosure from both parties. Conversely, in Schwartz v. Schwartz, a prenup was deemed invalid due to one party not fully understanding the implications, highlighting the importance of legal advice during the drafting process.