Prenuptial Agreements, better known as “Prenups,” are not just simply for protecting the assets of wealthy individuals. Rather, prenuptial agreements have far more uses and benefits and can help ensure peace of mind when it comes to your marriage and your future.

A prenuptial agreement is a contract entered into prior to marriage. Just as business contracts include clauses in-case partnerships dissolve, so too should people entering into a life partnership be prepared for all possibilities.

What it covers

The contents of the agreement can vary widely depending on people's desires, but commonly the agreement includes provisions for division of property and spousal support in the event of divorce. In your agreement you can: protect your separate property, support your estate plan, define what property is marital property and separate property, reduce conflicts and save money if you divorce, clarify special agreements, and establish procedures and ground rules for deciding future matters.

Prenuptial agreements cannot cover everything however. Prenups in New York State are not allowed to regulate issues relating to the children of the marriage, in particular, custody, visitation, and other access issues because these issues must be decided based on the "child's best interests." There is no presumption that either parent is better suited to have custody. The court considers all relevant factors, including acts of domestic violence and the safety of the child.

Although the interests of children are believed to be out of reach from the long arms of a prenup, there are plenty of assets that you own that are appropriate to address in a prenuptial agreement. If you have assets such as a home, stock or retirement funds, you own all or part of a business, you may be receiving an inheritance, or you have children and/or grandchildren from a previous marriage, these are all reasons to obtain a prenup. Similarly, if you or your partner is much wealthier than the other, one of you will be supporting the other through college, you have loved ones who need to be taken care of, such as elderly parents, or you have or are pursuing a degree or license in a potentially lucrative profession such as medicine, law or finance, it is imperative that you protect yourself with a prenuptial agreement.

Making a Prenuptial Agreement

In New York State a Prenup must:

1. Be in writing (oral prenups are always prohibited);

2. Be executed voluntarily;

3. Have full and fair disclosure at the time of execution;

4. The agreement cannot be unconscionable (grossly unfair);

5. Be signed before a notary public.

If a judge decides that your prenup is unfair or doesn't meet state requirements, the agreement will be set aside. Although it is perfectly fine to negotiate and create a basic prenup yourself, both parties should get the prenup reviewed by an attorney who can advise them on their rights and review the prenup to ensure it complies with state laws.

It is important to remember that a prenuptial agreement is not a sign that the couple does not trust each other and does not believe in the marriage. In fact, not only can it help in case of a divorce, but a prenup can even help resolve many issues that may arise in a successful marriage. Discussing these issues prior to marriage may actually prevent a divorce.