What do prenups cover?
Prenups can cover a wide range of issues that come up during a divorce. They almost always detail how assets and liabilities will be split and can address the particularly thorny issue of alimony, or how much one ex-spouse will give the other to support them.
Well-crafted prenups address the division of property, such as the marital home, furniture, cars, jewelry, and other valuable items. Financial assets also should be discussed. A prenup will define how savings, investments, retirement accounts, and inheritances are divided. Depending on the length of the marriage, pet custody -- but not child custody -- can become part of a prenup.
Equally important is the division of liabilities. A prenup should stipulate how mortgages, credit card balances, car loans, and student debt will be paid. Bankruptcies and foreclosures may also be addressed for soon-to-be ex-spouses who are struggling financially. Legal fees and insurance are often part of a prenup, and alimony is a subject best addressed sooner rather than later in a prenup.
It's worth noting that nine states have community property laws. In Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin, most assets acquired during a marriage by either party are considered joint assets. Marital assets will be split evenly in a divorce in these nine states.
