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A prenuptial agreement is a legal document allowing engaged couples to outline asset distribution in the event of divorce. These agreements are often recommended by financial advisors, as the interplay between love and money can be complex. The video emphasizes the importance of considering this document before marriage. Without a prenup, if a divorce occurs, couples may negotiate asset division amicably; however, if they can't agree, court involvement becomes necessary. Asset division laws vary by state, and understanding these differences is crucial. The video also promises a link to a lawyer-approved prenuptial agreement at the end.