A prenuptial contract, better known as a prenup agreement, is a legal document between two people who plan to marry. It determines how financial matters will be handled during the marriage and in the event of divorce or death. While some assume they’re only useful for the wealthy, the different types of prenups can benefit couples of all financial backgrounds by providing clarity and protecting both parties’ interests.
If you’re wondering, are there different types of prenups?—the answer is yes. Prenuptial agreements can vary based on their purpose and scope. Different types of prenups might make more sense, depending on a couple’s specific situation. Let’s take a look at some of the most common ones and how they work.
Marriage Contracts vs. Cohabitation Agreements
Prenuptial agreements generally fall into two broad categories:
- Marriage Contracts – These are traditional prenup contracts signed before marriage. They establish financial rights, determine how assets will be handled, and outline responsibilities during the marriage.
- Cohabitation Agreements – While not technically “prenuptial” agreements, these serve a similar purpose for couples who live together but don’t plan on getting married. They outline property rights and financial obligations for unmarried partners.
Here’s a hypothetical example:
Emma and Jake have been together for ten years but don’t want to get married. They own a home together and have joint savings. A cohabitation agreement provides them a clear plan for dividing their assets if they separate. Without it, they might face legal battles over property ownership.
For those entering a legal marriage, a marriage contract is the standard type of prenup agreement.
Common Types of Marriage Prenups
A well-drafted prenup contract can address various financial matters. Here are the most common types of prenuptial agreements:
Asset Protection Prenup
Clarifies what each spouse owns before marriage and keeps those assets from becoming marital property.
Example: Sophia owns a condo before marriage and wants to keep it in her name if she and her spouse divorce. A prenup contract can specify that the condo is her separate property, preventing disputes later.
Debt Protection Prenup
Prevents pre-marital debts from becoming a shared responsibility after marriage.
Example: Chris has $75,000 in student loans, while his partner, Mia, is debt-free. Their prenup agreement states that if they divorce, Chris’s loans remain his responsibility, preventing Mia from having to pay them.
Business Protection Prenup
Keeps a business started before marriage remains under the original owner’s control.
Example: Liam owns a bakery he built from the ground up. His prenup agreement specifies that the business remains his and won’t be subject to division, even if he and his spouse divorce.
Spousal Support (Alimony) Prenup
Establishes whether spousal support (alimony) will be paid if the marriage ends, setting clear expectations.
Example: Emma and Noah agree in their prenup contract that if they divorce, Noah will pay Emma alimony for five years rather than the indefinite payments state law might require.
Estate Planning Prenup
Makes sure specific assets go to children from previous relationships instead of being divided as marital property.
Example: David, who has two kids from a previous marriage, wants to ensure that his children inherit his savings and family home. His prenup agreement outlines that these assets remain separate and go to his kids instead of his new spouse.
Lifestyle Prenup
Includes lifestyle clauses related to behavior in the marriage (e.g., social media use, infidelity, household responsibilities). Courts may not always enforce these provisions.
Example: A prenup contract might include a clause stating that if one spouse is unfaithful, they forfeit certain financial benefits in a divorce.
Key Legal Considerations
For a prenup agreement to be valid, it must meet these legal requirements:
- It must be in writing – Verbal agreements aren’t enforceable.
- Both parties must sign voluntarily – Coercion or pressure can void the prenup.
- Full disclosure of assets is required – Hiding assets can lead to a legal challenge.
- It cannot be unconscionable – Courts won’t enforce an unfair prenup contract.
Example: Sarah’s prenup agreement states that if she divorces her spouse, she gets everything, and he gets nothing. A court would rule this unfair and therefore, unenforceable.
Prenup FAQs
What is the most common type of prenup?
A standard prenup agreement protects individual assets and outlines property division in case of divorce.
Are prenups enforceable in all states?
Most states recognize prenup contracts, but they must meet legal requirements, including full disclosure and voluntary agreement.
Can a prenup include lifestyle clauses?
Some prenup agreements include clauses about behavior (like social media use), but courts may not always enforce them.
Should You Get a Prenup?
Prenups are not just for the wealthy. They provide financial clarity, protect individual assets, and help prevent legal battles in case of divorce. Whether you need one depends on your financial situation and long-term goals.
While all types of prenups serve a purpose, the right one depends on your specific financial and legal needs. If you’re considering a prenup agreement, consulting a family law attorney can help you determine if it meets legal requirements and protects your interests.
Resources:
https://www.nycbar.org/get-legal-help/article/family-law/marital-agreements/prenuptial-agreements/
