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Hannigan was born in Washington, D.C. to Albert Hannigan, an American Photographer, and Emilie Posner, a Jewish American real estate agent. Her parents divorced a year after her birth and she was raised mostly by her mother in Atlanta. Although Hannigan had appeared in an industrial film for "Active Parenting" as a baby, as well as starred in a commercial for the "Duncan Hines cookie mix" in 1978, it wasn't until she moved to Los Angeles, California in 1985 that she formally began her acting career. Living with her mother and attending North Hollywood High School, she successfully auditioned for agents while visiting her father in Santa Barbara.