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Prenups, or prenuptial or premarital agreements, are financial contracts made between the two engaged parties prior to the marriage. It establishes certain rules about how assets or debts will be divided if the marriage dissolves.
Prenups Can
Post-marital agreements — also called postnuptial agreements or postnups — cover the same issues as premarital agreements. However, postnups are negotiated and signed by already-married couples.
Post-marital agreements have gained traction lately. Couples utilize this tool to provide predictability in the handling of inheritances or gifts received during a marriage or in the allocation of their business interests. Sometimes, the marriage has endured a rough patch but the spouses have reconciled and wish to formalize any new understanding about financial issues they‘ve reached.
A domestic partnership agreement is akin to a premarital agreement. It’s used by parties who do not intend to marry or who intend to register a domestic partnership (civil union) with the state.
Like a prenup, a domestic partnership agreement enables a couple to keep finances and debts separate. It can be an effective protection plan should the domestic partners split up or a partner passes away. Learn more about domestic partnerships here.