What Is a Prenuptial Agreement? A Simple Guide for Couples

The simplest definition

A prenuptial agreement — sometimes called a premarital agreement or simply a prenup — is a legal contract signed by two people before they get married. It establishes, in advance, how financial matters will be handled during the marriage and if the marriage ends, either through divorce or death.

Think of it like a business partnership agreement, but for your marriage. Just as business partners set terms before opening a company together, a prenup lets couples define their financial relationship before combining their lives. Done right, it's not pessimistic — it's pragmatic.

What a prenup can do

• Define which assets each person owns separately and which are shared marital property
• Protect a business you started before or during the marriage from division in a divorce
• Limit or waive spousal support (alimony) — or set specific terms for how it's calculated
• Allocate pre-marital debts so each partner remains responsible for their own
• Establish what happens to property you inherit or receive as a gift
• Set terms for how marital property is divided if you separate
• Include a sunset clause so the agreement expires after a certain number of years

What a prenup can't do

Prenups are powerful tools, but they have real limits. No prenuptial agreement can:

• Determine child custody or visitation — courts always decide this based on the child's best interests at the time of divorce, not based on a pre-marital agreement
• Set child support below the legal minimum — support levels are governed by state law and cannot be waived
• Include provisions that violate public policy (for example, clauses that incentivize divorce)
• Govern personal, non-financial matters (household chores, relationship conduct, etc.)

The most common myths about prenups

"Prenups are only for the rich." This is the most persistent myth. In reality, prenups are equally valuable — sometimes more so — for people with modest means. If you own a small business, carry student loan debt, expect an inheritance, or have children from a prior relationship, a prenup protects you regardless of your net worth.

"Asking for a prenup means you don't trust your partner." A prenup isn't a statement of distrust. It's a shared decision to be explicit about financial expectations before the wedding — when you're both thinking clearly and from a position of mutual respect, rather than negotiating in the middle of a painful divorce.

"Courts always throw out prenups." Courts uphold properly executed prenups regularly. The cases that fail typically involve undisclosed assets, coercion, or agreements signed under duress. A prenup completed with full financial disclosure and adequate time before the wedding is very likely to hold up.

Who should consider a prenuptial agreement

You don't need to be wealthy to benefit from a prenup. Consider one if you or your partner has any of the following:

• Significant assets owned before the marriage (property, investments, savings)
• A business — even a small one
• Cryptocurrency, NFTs, or other digital assets
• Substantial debt (student loans, credit cards, a mortgage)
• Children from a prior relationship
• Expectations of a significant inheritance
• A large disparity in income or wealth between partners
• Plans for one partner to leave the workforce to raise children

The truth is, the conversation itself has value regardless of your financial situation. Working through a prenup forces couples to talk openly about money, expectations, and what a fair outcome looks like — conversations that strengthen relationships rather than weaken them.

Clause is not a law firm and this article is not legal advice. For guidance specific to your situation, consult a licensed family law attorney in your state.