What is a Prenup? Meaning, Benefits, and Options

Modern couples are entering marriage with more complexity: equity, real estate, dual-incomes, inheritance, career gaps. As a result, prenups are on the rise: today’s couples are up to 6x more likely to get one than they were 15 years ago.

In today’s world, it is best to think of a prenup as a pre-marriage money conversation. It builds trust and helps you both understand how you want to manage finances during your marriage. 

Beyond simply dividing assets, a prenup clarifies spousal support arrangements, addresses business interests, and simplifies estate planning. At Neptune, we strongly believe that open communication and trust are the foundation of a strong partnership.

What is the meaning of a prenup?

A prenuptial agreement, often shortened to prenup, is a personalized financial plan you and your partner create before getting married. 

Essentially, a prenup is the blueprint for your financial future with your partner. It’s a way for you both to take a proactive approach to discussing and planning finances. It can be tough to have these conversations … but it will help prevent future conflicts and pave the way for a happier, stronger marriage. 

State laws often don’t match or capture the complexity of your specific relationship. Instead, using a prenup allows you to be in the driver’s seat and decide what your future should look like. 

Who are prenups for?

Prenups are for everyone, including couples wishing to secure their financial future. They are a tool to set the financial tone early in a relationship. 

Prenups aren’t reserved for couples with substantial wealth. It’s for any couple looking to cement their relationships on a sound financial and legal footing. 

Apart from those entering into a legal union, prenups can benefit couples wishing to define how they’d manage finances during their time together. They can outline how joint accounts will be handled, financial decisions will be made, and future earnings and acquisitions will be treated. 

Further, prenups bring transparency to relationships where individuals have different earning potentials or financial situations. It’s about open discussions about finances and your future.

When should you start your prenup?

Prenups are finalized before a couple marries. In fact, certain states require couples to sign prenups at least 24 hours before a wedding ceremony. Plus, if the timeline was rushed, the agreement may not hold up later, especially if one partner felt pressured.

Legal issues aside, you don’t want your prenup to become stressful as your wedding nears. Many other details will need your attention. 

This is why it is best to start your prenup as early as possible. A good time to initiate the conversation is when you and your partner start talking about a serious commitment. This lets both of you approach financial planning calmly and integrate it into your broader discussions about a future together. It gives both of you sufficient time to discuss assets, financial values, and future plans without the pressure of an impending ceremony. 

Prenups can be struck down because a couple shares one lawyer. You should each meet with a lawyer early in the process and then come together to discuss next steps, setting the tone for open communication about this important issue. 

Benefits of a prenup 

Prenups come with several pros. They can help cement your relationship and lay the foundation for a secure financial future. Besides the legal benefits, they help build trust among partners. The benefits include:

1. Financial clarity

You and your partner have your own unique financial philosophy and behaviors. A prenup helps you both bridge the gap. It starts with you both listing your income, assets and debts. This creates transparency and opens the door to having an in-depth conversation on what your money situation looks like now and in the future.

2. Planning for future legal costs

As you plan for your marriage, it’s important to look ahead. It’s good to create a plan for what ifs, such as separation or death. It’s hard to think about those scenarios, although it’s smart for your future. 

3. Open communication 

Within its formal framework, a prenup offers you and your partner an opportunity to communicate openly. It often helps with discussions about financial plans, well-being and constraints that may otherwise have gone unstated. When done right, this process cements trust and transparency in the relationship, providing a strong base for long-term commitment. 

How to get a prenup

Working with a qualified family lawyer through N helps you navigate difficult conversations with your partner, calmly and objectively. Your lawyer will help you address the right questions and build a prenup customized to your needs. 

Neptune is the financial concierge that wealth-building couples trust to lay the foundation for their shared future — starting with prenups. By combining emotionally-intelligent AI, vetted legal experts, and transparent flat-fee pricing, Neptune creates financial alignment, transforming a traditionally tense process into a relationship-strengthening experience. Start the conversation with Neptune today.