When entering into a marriage, few people contemplate the possibility that the relationship may eventually come to an end. However, couples should not overlook the importance of planning ahead to avoid or minimize adverse economic consequences in the event of termination of the relationship or death of one of the parties. Entering into a prenuptial or postnuptial agreement may save couples time, money, and inconvenience if their relationship should end.
A prenuptial agreement (prenup) is a contract created by two people before they marry that specifies how assets will be distributed if the marriage ends. A prenup can protect assets in case of divorce and ensure that a spouse’s wishes regarding distribution of property after death are respected.
Like a prenup, a postnuptial agreement (postnup) sets forth how assets will be distributed in the event of divorce or death, but a postnup is signed during the marriage as opposed to prior to the marriage. Prenups and Postnups are enforceable in Arizona.