Future Business Leaders of America (FBLA) Business Law Practice Exam

What is a prenuptial agreement?

1. A contract signed after marriage

2. A legal contract before marriage regarding property and support

3. A document for filing taxes jointly

4. A certification of marital status

The correct answer is: A legal contract before marriage regarding property and support

A prenuptial agreement is specifically a legal contract that two individuals enter into before marriage, outlining how property and financial obligations will be handled in the event of divorce or separation. This agreement typically encompasses issues such as the division of assets, spousal support, and other financial responsibilities, allowing both parties to establish clear terms and expectations before entering into the marriage. By signing the agreement prior to marriage, the individuals are making informed decisions about their financial futures and minimizing potential conflicts in case the marriage does not work out. This proactive approach can provide both parties with peace of mind regarding their financial situations. The other choices do not accurately describe a prenuptial agreement. For instance, signing a contract after marriage refers to a postnuptial agreement, which serves a different purpose. A document for filing taxes jointly pertains to tax-related matters rather than marital financial agreements. Lastly, a certification of marital status does not convey any information about property or financial agreements between spouses.