Amanda Hill explained that a prenuptial agreement is a legally binding contract signed before marriage that outlines how finances, assets, debts, and liabilities will be handled if the couple divorces. While there are limitations on what can be included, the agreement primarily focuses on financial matters, making it a proactive step in preparing for the unexpected.
According to Amanda Hill, having a prenuptial agreement is similar to carrying an insurance policy. Just as no one wants to get into a car accident or face a medical emergency, couples do not plan to divorce. However, planning for that possibility ensures clarity and fairness. A prenup provides protection so both parties know in advance how financial matters will be addressed, rather than leaving it to chance.
Amanda Hill addressed the common misconception that prenups are only for celebrities or high-net-worth individuals. She explained that even couples with limited assets should consider one, since the agreement can cover future earnings, retirement accounts, businesses, or unexpected financial windfalls. Even couples starting with student loan debt can use a prenup to protect each partner from being responsible for the other’s obligations.
Amanda Hill highlighted that prenups vary by state, and California has strict rules. Custody arrangements and child support terms cannot be included since courts determine these based on the child’s best interests at the time of separation. Infidelity clauses, while sometimes added, are rarely enforceable because definitions and proof are often disputed.
However, many important financial issues can be addressed, including spousal support, real estate, investment accounts, retirement accounts, and debt allocation. Amanda Hill shared an example where spousal support was tied to the number of years married, offering a predictable formula instead of ongoing disputes.
Amanda Hill noted that prenups are often more common in second marriages or blended families, as individuals may want to avoid repeating past financial mistakes. While not necessarily more important than in first marriages, the experience of prior divorces makes couples more open to having these difficult but necessary conversations.
Amanda Hill explained that California’s community property system makes prenups especially valuable. Many people mistakenly believe that if an account or credit card is only in one spouse’s name, the other spouse is not responsible. In reality, if it was acquired or used during the marriage, it is considered community property. A prenup allows couples to make exceptions to these default rules.
Amanda Hill emphasized that timing matters. In California, once the final version of a prenup is presented, each party must wait at least seven days before signing to ensure the agreement is voluntary and fully considered. Signing too close to the wedding or without independent legal representation can lead to the agreement being invalidated.
She recalled a case early in her career where a prenup involving millions of dollars in assets was thrown out due to coercion and lack of representation, proving how essential proper legal guidance is in the process.
Amanda Hill confirmed that postnuptial agreements are recognized in California, though not in every state. These agreements, signed after marriage, are scrutinized more closely in court and are easier to challenge. While they can be useful, especially when couples are working through difficulties, they are not as strong as prenups and require extra care in execution.
While celebrities typically hire expensive attorneys to draft airtight agreements, Amanda Hill explained that even they cannot bypass certain legal limitations. Issues related to child custody and support remain subject to court decisions regardless of wealth or a prenup. She cited Brad Pitt and Angelina Jolie as an example where custody matters became central despite their substantial assets.
Amanda Hill encouraged couples to frame prenups as a form of financial planning rather than distrust. Comparing them to health or car insurance can help ease the stigma. She explained that prenups do not have to cover everything—some focus on protecting a single asset, such as a home, while others simply exclude spousal support.
Ultimately, Amanda Hill highlighted that modern couples, especially those marrying later in life after establishing careers, increasingly see prenups as a way to preserve fairness and clarity rather than as a tool to cut one partner out.