What Can Be Included in a Colorado Prenuptial Agreement?

A prenuptial agreement, often called a "prenup," is a legal contract signed by two people before marriage that outlines how financial matters will be handled during the marriage and in the event of a divorce. Many people assume that prenuptial agreements are only for the wealthy, but they can benefit anyone who wants to clarify financial rights and responsibilities before getting married. Understanding what can be legally included in a Colorado prenuptial agreement can help couples create a fair and enforceable contract.

What Can Be Included in a Colorado Prenuptial Agreement?

A properly drafted prenuptial agreement can cover a wide range of financial and property matters. Below are some of the key elements that can be included:

1. Division of Property

Colorado is an "equitable distribution" state, meaning that in a divorce, assets and debts are divided based on fairness rather than a strict 50/50 split. A prenuptial agreement allows couples to specify how property will be divided instead of leaving it to a judge’s discretion. This can include:

• Identifying separate property that each spouse will keep
• Determining how marital property will be divided
• Deciding what happens to real estate, vehicles, and personal belongings

2. Protection of Business Interests

If one or both spouses own a business, a prenuptial agreement can protect business assets from being divided in a divorce. This may include:

• Clarifying that the business remains separate property
• Specifying how business earnings and appreciation will be handled
• Preventing a spouse from claiming ownership in the company

This is particularly important for business owners who want to ensure their company remains intact after a divorce.

3. Debt Protection

A prenuptial agreement can outline how debts will be handled, protecting each spouse from being responsible for the other's financial obligations. This can include:

• Clarifying that student loans, credit card debt, or other liabilities remain with the spouse who incurred them
• Deciding how mortgage or car loan payments will be divided

Without a prenup, debt acquired during the marriage may be divided between both spouses, even if one person was not responsible for it.

4. Spousal Support (Alimony)

Colorado law allows couples to decide whether one spouse will receive alimony in the event of a divorce. A prenuptial agreement can:

• Waive spousal support entirely
• Set a specific amount and duration for alimony payments
• Establish conditions under which alimony will or will not be awarded

However, courts may refuse to enforce alimony provisions if they are found to be "unconscionable" at the time of divorce, meaning they are extremely unfair based on the couple’s financial situation.

5. Estate Planning and Inheritance Rights

For couples who have children from previous relationships or significant assets, a prenuptial agreement can clarify inheritance rights and protect family wealth. This may include:

• Ensuring certain assets go to children from a previous marriage
• Protecting family heirlooms or real estate
• Coordinating with estate planning documents, such as wills and trusts

6. Financial Responsibilities During Marriage

A prenup can also outline financial responsibilities during the marriage, such as:

• How household expenses will be divided
• Who is responsible for managing joint bank accounts
• How savings and investments will be handled

These provisions help prevent financial disputes and ensure both spouses have a clear understanding of their obligations.

What Cannot Be Included in a Colorado Prenuptial Agreement?

While prenuptial agreements can cover many financial matters, there are certain provisions that cannot be legally enforced in Colorado:

1. Child Custody and Child Support

Courts will not uphold any agreement that determines child custody or child support in advance. These matters are always decided based on the best interests of the child at the time of divorce, not based on a prenuptial agreement.

2. Unfair or Unconscionable Terms

If a court finds that a prenuptial agreement is extremely unfair to one spouse, it may be deemed "unconscionable" and not enforced. This can apply to:

• Alimony waivers that leave one spouse financially destitute
• Property division that is heavily one-sided

3. Personal and Non-Financial Matters

Courts do not enforce provisions related to personal issues, such as:

• Requiring a spouse to maintain a certain appearance
• Setting rules for household chores
• Determining how often the couple will take vacations

Prenuptial agreements should focus solely on financial and legal matters.

Why Should You Consider a Prenuptial Agreement?

Many people believe that prenuptial agreements indicate a lack of trust or an expectation of divorce. In reality, a prenup is a smart financial tool that provides clarity and protection for both spouses. Some key benefits include:

• Protecting premarital assets
• Avoiding costly and stressful legal battles in the future
• Providing financial security for both spouses
• Ensuring business interests and inheritances remain intact

Discussing a prenuptial agreement before marriage allows couples to have open and honest conversations about finances, helping to prevent future misunderstandings.

Get Legal Help Drafting a Prenuptial Agreement

For a prenuptial agreement to be valid in Colorado, it must be written, signed voluntarily by both parties, and include full financial disclosure. Having an experienced attorney draft or review the agreement ensures that it meets legal requirements and protects both spouses’ interests.

If you are considering a prenuptial agreement, contact us today. Our legal team can guide you through the process and create an agreement that provides peace of mind for your future.