What Is a Prenup, and What Can Be Included?

A prenuptial agreement is a legal contract made between two people before they get married. It helps begin to shape shared financial expectations and outlines each person’s rights and responsibilities regarding their individual and shared assets.

Prenups aren’t just for the wealthy anymore. Traditionally, prenups have been seen as a tool for a wealthy partner, usually male, to use expensive lawyers to protect established assets from a less affluent partner. But as the modern couple has changed, the prenup is now increasingly embraced by couples from diverse financial backgrounds to establish clear financial expectations.

The prenup is no longer about mistrust or planning for divorce. It’s a proactive tool that allows two people to align on financial values, protect their individual assets, and align on shared interests through open communication. From dual-income earners to second marriage partners, there’s now a vast range of types of individuals who consider prenups.

Whether you are the one with significant assets, are building a business or simply want to avoid future financial misunderstandings, a prenup is about building a foundation of clarity, fairness, and mutual respect.  

When you’re creating a prenup, both parties need to have their own legal representation to ensure the agreement is clear, fair, and works for both of you. The agreement can cover things like:

·         Assets each person brings to the partnership

·         Property you want to keep separate

·         Business interests, including startup equity

·         Any existing debt, like student loans and credit card debt

·         Provisions for children from previous relationships (if applicable)

By law, prenups require you to share all of your financial details with the lawyers. If you both lay everything out early, you can move forward with confidence, knowing you’re on the same page.

Pros of a Prenup

1. Open Up the Conversation About Finances

Talking about finances with your partner might not be the most fun thing on your wedding to-do list, especially when it involves laying everything out on the table. But at the core of it, a prenup gives you both a chance to have those tough conversations before saying, “I do.”

A prenup gives you both a chance to be open about your assets, debts, spending habits, and financial goals. Not only does this build trust, but it also helps you understand each other’s approach to finances better.

2. Clarity on Premarital Assets

Before tying the knot, a prenup can help partners decide which assets or properties will stay separate and which ones might be shared. For example, two partners can discuss how they want to purchase a marital home. One partner may have their parents contribute to the downpayment and set aside a clause in the prenup to protect that contribution in the case of separation. It’s easy for couples to mix things up over time, but defining premarital assets upfront allows for better financial planning and helps minimize arguments and the chance of confusion later on.

3. Managing Debt

Sometimes, either partner comes into the relationship with a lot of debt. With a prenup in place, you both already know who’s responsible for such debts, especially if things don’t work out. Oftentimes, couples take a stance of separating their debts acquired during the marriage as separate. For example, if your partner were to acquire student debt during the marriage, you can draw a clear line on the ownership of this debt. You and your partner are likely to feel more secure when you both know where you stand regarding debt from the beginning.

4. Avoiding Surprises

Life is unpredictable, and surprises can pop up when you least expect them. With a prenup, you can outline how your assets will be managed before you tie the knot. This way, if things take an unexpected turn, you won’t be caught off guard. When you and your partner craft a solid agreement upfront, you can both tackle whatever life throws your way with confidence.

5. Securing Children’s Interests

If you or your partner have children from previous relationships, a prenup can help you plan for their future together. It allows you to work together to ensure their inheritance is sorted in a way that feels fair to everyone and that their needs are front and center if anything unexpected happens.

6. Fairness in Parenting Responsibilities

Raising children requires a team effort. If one of you plans to give up a career to stay home to raise the children, a prenup can help you figure out how to share the financial responsibilities in a way that feels fair for both of you. While a prenup cannot have any clauses around child custody or child support, but it’s great for outlining how you view each other’s contribution to building a family..

Cons of a Prenup

1. May Not Hold Up in Court if Done Incorrectly

In some cases, a prenup might not hold up in court. This can happen if one person didn’t fully disclose their finances or if the agreement seems unfair or was signed under pressure. To make sure your prenup is legally sound and enforceable, it’s extremely important to work with an experienced family law attorney.

Both of you should have separate lawyers so you each understand the agreement and its implications. Neptune can connect you with trusted legal experts who’ll guide you through the process and draft an agreement that holds up over time.

2. Legal Fees and Complexity

Drafting a prenup can get expensive, especially with the legal expertise required to ensure it’s enforceable. Hiring an experienced attorney is critical. The role of an attorney is to guide you through the nuances of the prenuptial agreement - and this expertise is well worth the investment.

However, in the transactional world of family law, some lawyers may prioritize maximizing fees over building trust, knowing they’re unlikely to have recurring clients. This approach can result in unnecessarily high costs. That’s where Neptune can help. With Neptune, you can save money by connecting with trusted lawyers who offer flat-rate pricing, so you don’t have to worry about being overcharged.

Take the Next Step With Neptune’s Support

A prenuptial agreement isn’t just about financial protection - it’s about building a stronger, more transparent foundation for your relationship. This foundation helps build the strength for a lasting relationship. Whether you’re sure about moving forward or still considering your options, Neptune can connect you with trusted, experienced family law attorneys to help you through the process.

With Neptune, you’ll have access to our prenup concierge service, which helps you and your partner get clear on your priorities before you even speak to a lawyer. This preparation makes the process less complicated, more affordable and personalized to you and your partner’s unique needs.

Ready to get started? Chat with Neptune today and build a plan that works for both of you.