What is the primary purpose of a prenuptial agreement?

The primary purpose of a prenuptial agreement is to outline property ownership and division in case of divorce. A prenuptial agreement, often referred to as a "prenup," is a contract entered into by a couple prior to marriage that specifies how assets and debts will be handled in the event of a divorce or separation. This agreement serves to clarify each party's rights and responsibilities regarding property, which can help reduce conflict and uncertainty during a divorce. It addresses issues such as the division of marital property, spousal support, and inheritance rights, providing a clear framework for asset division that aligns with both parties' intentions and financial interests.

In contrast, the management of joint bank accounts during marriage or establishing financial independence before marriage focuses on the ongoing financial management within the marriage rather than the specifics of property division after a potential divorce. Similarly, while a prenuptial agreement may mention certain financial obligations, its core function revolves around outlining the rights and responsibilities pertaining to property and finances should the marriage end, thus emphasizing the importance of clear guidelines for asset division.