Prenuptial and Postnuptial Agreements: What They Can and Cannot Do

Prenuptial and postnuptial agreements are contracts between spouses used to clarify expectations about property, finances and responsibilities within marriage. While a prenup is signed before marriage and a postnup after, both allow couples to make crucial financial decisions in advance. Many Arizona couples consider these agreements to protect premarital assets, manage risks from prior relationships or simply provide clarity and peace of mind. Under Arizona’s community property laws, most assets and debts acquired during marriage are considered jointly owned.

Prenups are executed before marriage while postnups are signed afterward, but both serve to modify, clarify or override Arizona’s default property rules. The Arizona Uniform Premarital Agreement Act (UPAA) sets rules for prenups and guides postnups as well. For an agreement to be valid, it must be in writing, signed by both parties and entered into voluntarily. Full and fair financial disclosure from both spouses is required and the agreement cannot be unconscionable (grossly unfair) at the time it’s made. 

A properly drafted prenup or postnup can define what property remains separate versus what becomes community property, helping protect assets acquired before marriage or received by inheritance or gift. Couples can set ground rules for how property like real estate, businesses or investments would be divided in case of divorce. They may address spousal maintenance — setting, waiving or predetermining alimony — though courts will review these provisions for fairness. Business owners can use these agreements to secure their interests and future growth. They also clarify debt responsibilities and support estate planning by outlining spousal rights at death or coordinating with wills and trusts.

However, there are clear limits. Arizona law does not allow prenups or postnups to settle issues of child custody or parenting time; courts must decide these based on the child’s best interests. Couples cannot pre-emptively set or waive child support. Agreements with illegal terms, penalties for divorce or unreasonable personal restrictions are unenforceable. Likewise, contracts signed under duress, without disclosure or that are extremely one-sided may be struck down.

Common pitfalls leading to invalid agreements include inadequate financial disclosure, signing under time pressure, lacking independent legal counsel or having unfair terms. Major life changes can also render an agreement unreasonable.

Couples should especially consider a prenup or postnup in second marriages, when business ownership or significant assets are involved, there’s a large income disparity or inheritances are expected. Clear agreements can minimize future conflict.

To create an enforceable agreement, both spouses need experienced legal counsel, full transparency and negotiations timed well in advance of wedding plans. Agreements should be kept fair and updated as circumstances evolve. To safeguard your interests and loved ones, consult with a knowledgeable Arizona family law attorney about your specific needs.

Clark & Schloss Family Law, P.C. in Scottsdale assists Arizona residents in creating prenuptial and postnuptial agreements. Please call 602-789-3497 or contact us online to schedule a consultation.