30 Apr What you should know about prenuptial agreements

Sometimes seen as controversial contracts between prospective spouses, prenuptial agreements can be a valuable tool to use before entering into a marriage contract.

Seen by some as bringing lawyers into the sacred bond of marriage, a prenuptial agreement doesn’t turn a marriage into a financial arrangement. It can provide protection to both spouses, prevents drawn-out disputes and reduces conflict in the unfortunate event of a divorce.

Codified under Tennessee state law as antenuptial agreements, prenuptial agreements were enacted in 1980 under Tennessee Code Annotated Section 36-3-501.

Prenuptial agreements are especially helpful for couples who have been married before or have children from previous relationships.

They aren’t just for couples where one or both have substantial assets. Prenuptial agreements are also a good idea if either party has a substantial debt.

A prenuptial agreement is more preparing for the worst, while hoping for the best.

The simplest prenuptial agreement just lists premarital assets that will remain with their original owner in the event of a divorce. But prenuptial agreements can also set things like spousal support, future income from a business, assets acquired during the marriage through inheritance, requirements for life insurance, who keeps the marital home, division of property, or even death benefits.

The one thing a prenuptial agreement cannot do is dictate terms of child custody or child support. That must be handled in a parenting plan.

To be a valid prenuptial agreement, the couple must meet a few conditions.

First, they must have independent knowledge of each others’ assets. This includes not just the value of assets but also of liabilities and debts. It is advisable to have the disclosure in writing to avoid disputes in the end.

Second, the agreement cannot be enacted under duress. So all those Lifetime movies about a groom pressuring a prospective bride into signing a prenuptial agreement are not accurate. One cannot say a week before the wedding, “I’m not marrying you without a prenup” and still be able to enforce it later.

Third, it must treat both spouses fairly. It cannot leave one destitute if enforced.

Finally, it has to be notarized and recorded.

Tennessee has not enacted the Uniform Premarital Agreement Act, which governs prenuptial agreements in 27 states. This means courts have broad discretion in enforcing prenuptial agreements.

Just like with any other contract, it’s also a good idea for each prospective spouse to have his or her own representation.

A prenuptial agreement make good sense for couples to enter into so they can understand what their rights and responsibilities are before marriage.

If you’re trying to understand the laws regarding marriage and divorce in Tennessee and need legal counsel, contact the Law Office of Michael Craig for any questions or to discuss your first steps.