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. Financial Asset

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

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

    A U.S. state-level legal distinction of a married individual's ...
  6. High Net Worth Individual - HNWI

    A classification used by the financial services industry to denote ...
Related Articles
  1. Marriage, Divorce And The Dotted Line
    Retirement

    Marriage, Divorce And The Dotted Line

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

    Divorcing? The Right Way to Split Retirement ...

  3. Services That Health Insurers Often ...
    Insurance

    Services That Health Insurers Often ...

  4. Revealing The Hidden Costs Of Weddings
    Budgeting

    Revealing The Hidden Costs Of Weddings

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center