What Does a Prenuptial Agreement Cover?
What Does a Prenuptial Agreement Cover?
A prenuptial agreement, also called a premarital or antenuptial agreement, is a contract you and your spouse enter before marriage that governs what happens if the marriage ends. While every agreement is different, most prenups address the division of property (equitable distribution) and spousal support (maintenance or alimony). They’re especially valuable in high-net-worth marriages where contested litigation could be costly and disruptive.
Under New York’s equitable distribution system, marital property is divided based on fairness rather than an automatic 50/50 split. This means the outcome is largely up to a court’s discretion. A prenuptial agreement lets you and your spouse set your own terms instead. Clearly defining how assets and debts are classified before marriage can reduce the likelihood of a contested divorce later.
A prenup can also address what happens if one spouse predeceases the other, including a waiver of the right of election, the statutory right to claim a share of a deceased spouse’s estate regardless of what a will provides.
Topics commonly covered in a prenuptial agreement include:
- Property division
- Debt division
- Spousal support
- Business interests and professional licenses
- Retirement accounts and inheritance rights
You may benefit from a prenuptial agreement whether you earn significantly more or significantly less than your future spouse. The agreement can protect both parties, not just the higher earner.