Prenuptial Agreements: Planning for Marriage, Money, and the Future

Prenuptial agreements, also referred to as prenup, have traditionally been associated with significant wealth and at times misunderstood as a sign of mistrust. For many couples, discussing the possibility of divorce while planning a wedding can feel uncomfortable or even out of place.

That perception is changing.

Recent CNBC reporting suggests that younger couples, particularly millennials and Gen Z, are increasingly approaching prenuptial agreements as practical planning tools. The shift may reflect later marriages, more established careers and assets, changing attitudes toward divorce, and a desire for more open conversations about money.

Prenuptial agreements are not necessary for every couple, but they can be useful planning tools. Whether marrying for the first time, entering a second marriage, or bringing significant assets or financial obligations into a relationship, a prenup can help establish a shared understanding before the wedding day.

What is a prenuptial agreement?

A prenuptial agreement is a legal contract entered into before marriage. It establishes how certain financial matters will be treated during the marriage and in the event of divorce or death. Depending on state law and the couple’s circumstances, a prenup may address:

Which assets will remain separate property
How property acquired during the marriage will be treated
Whether either spouse is entitled to spousal support
How the couple will manage existing or future debts
How business ownership interests will be t

For example, a business owner may want to establish that a company founded before marriage remains separate property and clarify how future appreciation or other changes in value will be treated.

Prenuptial agreements have limitations, and enforceability varies by state. They typically cannot decide child custody or set child support terms, which courts generally determine based on the child’s best interests at the time of divorce. A court may also review whether the agreement was entered into voluntarily, whether each partner made appropriate financial disclosures, and whether other legal requirements were satisfied.

Because the requirements vary by jurisdiction, each partner should have independent legal counsel when considering a prenup.

More Than a Divorce Planning Tool

A prenup is often viewed as something that matters only if a marriage ends. In practice, it can help couples begin their marriage with a stronger financial foundation and fewer unanswered questions.

For many couples, the process creates an opportunity to gain a clearer understanding of each other’s financial circumstances and expectations. Couples may be bringing different levels of wealth, debt, income, family obligations, or financial experience into the marriage. Discussing these issues before marriage can help establish a stronger financial foundation from the outset.

This can be particularly important when one partner owns significant assets or a business, expects an inheritance, carries substantial student loans or other debt, or has children from a previous relationship.

Blended families can present especially complex planning considerations. Someone entering a second marriage may want to preserve certain assets for children from a prior relationship while also providing for a spouse. When coordinated with an estate plan, a prenuptial agreement can help clarify those intentions and reduce the potential for future misunderstandings.

Starting important financial conversations

In many cases, the process of creating a prenup may be as valuable as the agreement itself. Preparing a prenuptial agreement requires couples to discuss their financial lives openly. That can mean reviewing assets and liabilities, considering how household expenses will be handled, discussing career and family decisions, and establishing expectations around inheritances, major purchases, and debt.

These conversations can also help couples identify broader financial goals. How will they combine or maintain separate finances? What happens if one spouse takes time away from work to raise children? How will they approach major financial decisions? What does financial security mean to each of them?

Having these discussions before marriage can encourage transparency and help couples develop a framework for managing money together. The process can be valuable even if the couple ultimately decides not to sign a prenup.

Some couples also use the process to discuss personal expectations that extend beyond traditional financial matters. Agreements may address matters such as pet ownership, frozen embryos, confidentiality and other priorities. While not every provision may be enforceable, the broader value often lies in having open, intentional conversations before issues arise.

Is a prenup right for you?

A prenuptial agreement is not right for every couple, but it is no longer simply a tool for the ultra-wealthy. For couples with significant assets, business interests, substantial debt, children from previous relationships, or other complex financial circumstances, a prenup may provide clarity and help protect individual and family interests.

More broadly, the process can help couples start marriage with a shared understanding of their financial lives and priorities.

A prenuptial agreement should be considered as part of a broader financial and estate planning strategy not in isolation. If you are considering a prenup, your financial advisor can help you evaluate how it fits within your overall plan and coordinate it with other planning priorities. Because state laws and enforceability requirements vary, legal advice should be obtained from an attorney familiar with your circumstances.