Prenuptial Agreement

AAA

DEFINITION of 'Prenuptial Agreement'

A type of contract created by two people before entering into marriage. This contract could outline each party's responsibilities and property rights for the duration of the marriage. More commonly, prenuptial agreements outline terms and conditions associated with dividing up financial assets and responsibilities if the marriage dissolves.

INVESTOPEDIA EXPLAINS 'Prenuptial Agreement'

Prenuptial agreements have always been a very controversial topic for couples. Media portrayals of prenuptial agreements show them as devices that celebrities and other similar high net worth individuals use in order to cap the amount of wealth that an ex-spouse can claim.

However, when carefully planned and used correctly, a prenuptial agreement can be a fair way of disbursing assets and responsibilities.

RELATED TERMS
  1. Financial Infidelity

    Financial infidelity occurs when couples with combined finances ...
  2. Common Law Property

    A system used by most states to determine ownership of property ...
  3. Certified Divorce Financial Analyst ...

    A member of the Institute for Divorce Financial Analysts who ...
  4. Financial Asset

    An asset that derives value because of a contractual claim. Stocks, ...
  5. Marital Property

    A U.S. state-level legal distinction of a married individual's ...
  6. Community Property

    A U.S. state-level legal distinction of a married individual's ...
Related Articles
  1. You Can't Live On Love
    Budgeting

    You Can't Live On Love

  2. What effect will a prenuptial agreement ...
    Retirement

    What effect will a prenuptial agreement ...

  3. Divorcing? The Right Way to Split Retirement ...
    Retirement

    Divorcing? The Right Way to Split Retirement ...

  4. Marriage, Divorce And The Dotted Line
    Retirement

    Marriage, Divorce And The Dotted Line

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center