A prenuptial agreement, commonly referred to as a prenup, is a contract agreed to by two people before they get married. Basically it is a list of the assets and debts each person owns before the marriage and how those assets and debts will be distributed after the marriage is over. Reasons for having a prenup are:
- A couple has significant assets or family wealth that they would like to keep in the event their marriage does not last.
- A couple has kids from a different marriage and would like to ensure that their personal property and assets are passed to their own children when they die.
- To avoid a lengthy and costly future divorce.
- To clarify the financial rights and responsibilities for each spouse during the marriage.
- To protect each spouse from the other's debts.
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