What is a prenup? Here's how to get one online

When you think of prenups, you might picture wealthy couples protecting millions, or even billions, of dollars, vacation homes, yachts and cherished family heirlooms. But you don't have to be a millionaire to benefit from a prenuptial agreement. Whether you're engaged or simply hope to get married someday, understanding how prenups work can help you make informed decisions before you ever walk down the aisle.

Here's what you need to know about prenuptial agreements.

A prenuptial agreement (or prenup) is a legal contract that couples sign before getting married. It outlines how assets, debts, inheritances, and, in some cases, spousal support will be handled if the marriage ends in divorce. A similar agreement signed after a couple is already married is called a postnupital agreement, or postnup.

If you don't have a prenup, your assets and debts will generally be divided according to your state's default laws.

Prenups generally can't determine child custody or child support, because courts decide those issues based on the child's best interests at the time of a divorce. They also typically can't dictate personal matters like household responsibilities or parenting duties. However, prenups can address many financial issues, including:

• Property each spouse owned before the marriage
• How property and assets acquired during the marriage will be divided
• Responsibility for debts incurred before or during the marriage
• Alimony or spousal support (subject to state law and court review)
• Inheritance and estate planning considerations, especially if one or both spouses have children from a previous relationship
• Ownership and division of a business started before or during the marriage
• How certain retirement assets will be treated or divided (subject to federal and state laws)

Keep in mind that every state has its own rules governing prenup agreements, so what can be included, and whether a provision is enforceable, may vary depending on where you live. If you have a specific circumstance you're unsure about, speak to a lawyer who specializes in prenups.

There are a few steps involved in creating a prenup, from discussing your finances with your partner to drafting and signing the document accoding to your state's legal requirements. One of the most common approaches is to work with a family law attorney who can explain your state's laws and help draft an agreement that reflects both partners' wishes. While each partner isn't always required to have their own attorney, having separate legal counsel is generally recommended to help ensure the agreement is fair and enforceable.

Hiring an attorney if typically the most expensive option. According to The Knot, couples can expect to pay anywhere from about $1,000 to $10,000 for a prenup, though costs vary depending on where you live and how complex the agreement is.

Couples with relatively straightforward finances may also consider online platforms that help create prenups for a flat fee. HelloPrenup, for example, charges a flat $599 per couple for its basic service and offers optional add-ons such as notarization (where applicable), attorney consultations and separate attorney representation for each partner.

LegalShield also offers assistance with prenup and postnup agreements through its monthly legal membership plans. Rather than paying a flat fee for a prenup, members receive access to attorneys and legal services, with the level of prenup support varying by plan. Depending on the membership tier, benefits may include document review, online notarization and discounts on additional legal services.

Before you sign your prenup, you need to make sure your agreement isn't at risk for one day being contested and voided by a judge.

Marriage timeline

While there's no universal rule for how far in advance a prenup must be signed, it's generally a good idea to finalize it well before the wedding. Signing a prenup just days before the ceremony could make it easier for one spouse to argue they were pressured or didn't have enough time to review the agreement, depending on the circumstances and state law.

Involuntary consent

Both partners must sign the prenup voluntarily. If a court determines that someone was coerced, threatened or subjected to undue pressure to sign, it may refuse to enforce all or part of the agreement.

Hiding assets

Both parties should fully disclose their income, assets, debts and other relevant financial information. Failing to disclose or intentionally hiding assets can make a prenup more vulnerable to being challenged in court.

Not following your state's legal requirements

Every state has its own rules for creating and signing a valid prenup. Depending on where you live, the agreement may need to be notarized, witnessed or executed in a particular way. Failing to follow your state's legal requirements could make the agreement harder to enforce.

Unfair or unconscionable terms

Courts may refuse to enforce a prenup if its terms are considered unconscionable. For example, if the agreement is extremely one-sided or leaves one spouse at a severe disadvantage. Whether a prenup is unconscionable depends on the facts of the case and state law.

While some people see prenups as planning for a marriage to fail, others view them as a way to make important financial decisions before emotions are heightened by a potential divorce.

A prenup gives couples the opportunity to establish many of their own financial rules (within the limits of state law) for how assets, debts and certain financial obligations will be handled if they divorce. If you don't have a prenup, then you'd follow your state's default divorce laws even if you don't agree with them, or your actual circumstances might fit alternative terms better.

Coming up with a personalized prenup means you get to consider financial arrangements for situations like:

• A spouse leaving the workforce to be the primary caregiver
• A spouse becoming ill or disabled and being unable to work
• Alimony terms
• How to split businesses created during the marriage

There are many financial issues couples can address in a prenup, allowing them to make decisions in advance instead of relying solely on state law or leaving those questions for a court to resolve.

There are two main legal systems the states use when it comes to handling divorce finances: community property and equitable distribution.

Community property

The community property framework states that all assets and debts generally acquired during the marriage are owned equally and should be split equally — 50/50. It doesn't matter which spouse earned more or saved more during the marriage.

There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

Equitable distribution

With the equitable distribution framework, a judge decides on a fair distribution of the assets and debts. While the division should be equitable, that doesn't mean it will be equal. A judge might consider factors like each spouse's contributions to the marriage (financial or otherwise), earning capacity, duration of the marriage and more.

The remaining states generally follow an equitable distribution system. Alaska is unique because couples can choose to opt into a community property system for certain assets.

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