The principal reason for a prenuptial agreement is for the parties to define how their assets, debts and past and future obligations will be handled. Full disclosure of all of the financial dealings of each partner and negotiating with one another about the financial issues, must occur well before the marriage ceremony takes place.

Prenuptial agreements aren't just for the wealthy. Even young couples benefit from a legal agreement about the financial aspects of their marriage. For example, discussions and agreements regarding how the couple intends to handle premarital debts and assets, post-marital income and assets, inheritances and the impact of children, eliminates many areas for future disagreement.

A premarital agreement can be advantageous to both parties. The agreement can spell out what previously owned property and debt will be kept separate from marital assets. It can also define financial obligations and responsibilities during the marriage, and may include the waiver of interest in retirement account assets or promises for future support. To have the best chance for success each party must be represented by separate lawyers, and each must fully disclose all assets and liabilities. Additionally, the prenuptial agreement must be prepared and entered well in advance of the wedding date. Forget about signing on the dotted line just minutes before the ceremony. Each party needs time to carefully consider all the aspects of the agreement.