PREMARITAL AGREEMENT

A legally-binding agreement made between two people intending to enter into a marriage.  This agreement may control certain aspects of their relationship, usually pertaining to the management, ownership or control of property.  Sometimes, premarital agreements may cover whether or not alimony will be paid or how property will be divided if the couple later divorces.

Courts usually honor premarital agreements, unless one person shows that the agreement was likely to promote a divorce, was written with the intention of divorcing or was entered into unfairly.  A premarital agreement is also commonly known as a prenuptial agreement.