The Financial Case for a Prenuptial Agreement

Prenuptial agreements carry a stigma of distrust, but the financial reasoning behind one has nothing to do with expecting a marriage to fail. A prenup is a financial planning document — it defines how assets, debts, and future earnings are treated, which matters regardless of how a marriage turns out.

Who Actually Benefits From One

• Anyone entering marriage with significant premarital assets, savings, or an inherited stake in a family business
• Anyone carrying substantial premarital debt they don't want their spouse legally exposed to in some states
• Business owners who want to protect the company from being considered a marital asset subject to division
• Second marriages, especially with children from a previous relationship whose inheritance you want protected
• Couples with a significant income or asset gap, where one partner wants clarity rather than assumptions

What a Prenup Can and Can't Control

A prenup can define property division, spousal support terms, and how debts are handled. It generally cannot determine child custody or child support — courts retain authority over those regardless of what a prenup says, since they're based on the child's best interest, not a private agreement.

The Real Cost and Process

Each partner needs their own attorney (a shared attorney creates a conflict of interest and can get the agreement thrown out later) — expect $1,500–$3,000 per side for a straightforward agreement, more for complex assets or business interests. Both partners must fully disclose their financial situation; hiding assets is one of the most common reasons a prenup gets invalidated in court.

The Postnup Alternative

If you're already married and didn't sign a prenup, a postnuptial agreement accomplishes largely the same thing after the wedding — useful when one spouse starts a business, receives an inheritance, or the couple simply wants to formalize an agreement they never got around to before marriage.