At this point, it's unclear how Jeff and MacKenzie, a novelist, will divide their assets upon divorce. It's also unclear whether they ever signed a prenuptial agreement. Jeff founded Amazon after he and MacKenzie married (they met when they were both working at investment-management firm D.E. Shaw in New York) and MacKenzie was one of Amazon's earliest employees. It's also possible that they signed a postnuptial agreement after Amazon took off.
So what's the difference between a prenuptial agreement (commonly known as a "prenup") and a postnuptial agreement ("postnup")?
Some couples sign a postnup years after getting married, when they realize there are issues that could threaten their relationship
A prenup is a legally binding contract two people sign before marrying that covers financial issues and the future of assets in the event of a divorce, Kelly Frawley, partner in the Matrimonial and Family Law Department at Kasowitz Benson Torres LLP , told Business Insider's Hillary Hoffower . Hoffower reported that prenups were once stigmatized, though they're quickly regaining favor among millennial couples.
A postnup is similar to a prenup, but takes place after a couple have married. As Heather L. Locus, head of the divorce practice group at Balasa Dinverno Foltz, writes for Forbes , "a postnup is an effective way to document intentions for earnings and assets during the marriage as well as in the event of a future divorce."
Couples typically sign a postnup either when they didn't have time to sign a prenup before the wedding or when they are "aware of issues that threaten their relationship and want to gain clarity on areas of conflict," Locus writes.
If Jeff and MacKenzie did sign a prenup when they were living in New York, it might have covered issues like defining separate and marital property. According to the New York City Bar legal referral service , that's the difference between property that will belong to just one person in the event of a divorce or property that will belong to both partners.
If, however, the couple signed a postnup when they were living in Seattle, it might have defined property rights for assets they acquired after marriage (like earnings from Amazon). Washington is a community property state , meaning that all assets and debts the couple acquires during marriage are the property of both spouses. As Business Insider's Tanza Loudenback reported, when a couple splits, they're each entitled to half of the assets.
In a statement on Twitter , in which he announced the impending divorce, Jeff wrote that he and MacKenzie "see wonderful futures ahead, as parents, friends, partners and ventures and projects, and as individuals pursuing ventures and adventures."
SEE ALSO: A look inside the 25-year marriage of the richest couple in history, Jeff and MacKenzie Bezos who met at work, were engaged in 3 months, and together owned more land than almost anyone else in America
