A pre-nuptial or post-nuptial contract legally outlines how assets and liabilities will be divided in the event of a divorce or death in Wisconsin. Such agreements allow couples to define separate property, which typically includes assets acquired before the marriage or received as gifts or inheritance, and marital property, generally acquired during the marriage. For example, a couple could stipulate that a business owned by one spouse before the marriage remains separate property even if its value increases during the marriage.
These legally binding contracts offer significant advantages, including the ability to customize property division beyond the state’s default community property laws. This can provide financial security and predictability, especially in situations involving complex finances, pre-existing businesses, or significant premarital assets. Historically, such agreements were primarily utilized by affluent individuals. However, their use has become increasingly widespread as societal norms regarding marriage and financial planning evolve. Protecting individual interests within a marriage through clear financial agreements is now viewed as a practical and responsible measure for many couples.
