What is a premarital agreement?

A premarital agreement (or prenuptial agreement) is a written agreement created by two people who plan to marry; the agreement typically lists all of the property and debts that each owns, and sets out the property rights of each spouse after they marry. Prenuptial agreements generally define how property would be divided in the event of a divorce, and whether alimony will be paid. Certain prenuptial agreements also double as wills, setting out the property rights in case of the death of one spouse.