Prenuptial Agreements

A prenuptial agreement sounds like something for the wealthy, or like a vote of no confidence in the relationship — but in practice it is a legitimate and common financial planning tool that protects both partners. Here is what it does and who it suits.

Disclosure: Educational information only. This is not legal advice. Drafting and approving a prenuptial agreement requires a lawyer. Any action you take is your own responsibility.

What a prenuptial agreement is

A prenuptial agreement (heskem mamon) is an agreement between partners regulating the division of property and assets between them — what belongs to whom, and what happens to property in the event of separation or divorce.

Absent an agreement, the Spousal Property Relations Law applies and sets a default division, usually an equal split of property accumulated during the marriage. A prenuptial agreement lets a couple set their own rules instead of the default.

What it can cover

Property brought into the marriage — an apartment, savings, a business — remaining with whoever brought it.

Property accumulated during the marriage — how it will be divided.

Inheritances and gifts received during the marriage.

A business or income-producing asset — protecting the continuity of the business.

Debts — separating responsibility.

Who it suits

A prenuptial agreement is particularly relevant when one partner brings a significant asset into the marriage, such as an apartment or a business; where there are disparities in property or debt; in a second marriage, especially with children from a previous relationship; or simply where a couple wants clarity in advance.

It is equally relevant for common-law partners (yeduim betzibur).

How to make one

The key step: the agreement requires legal approval to take effect.

An agreement drawn up before the marriage is approved by a notary, a marriage registrar, or a court or religious court. An agreement drawn up during the marriage is approved by the Family Court.

Without approval, the agreement may simply be invalid. It is advisable that each party is represented, or at minimum genuinely understands the agreement, so that it is fair and enforceable.

Common mistakes

1. Thinking it is only for the wealthy. It is relevant to any couple with assets or disparities.

2. Not obtaining legal approval. An unapproved agreement may have no force.

3. Postponing it until after the wedding. It is easier to arrange beforehand, though it remains possible afterwards with court approval.

Summary

A prenuptial agreement is not a sign of distrust — it is a planning tool that protects both parties and prevents future disputes. Where there are assets, disparities or particular circumstances, it is worth considering, with a lawyer. It forms part of wider family financial planning, alongside wills and estate planning. We provide the knowledge — the decisions remain yours.