What You Need to Know about Prenups
What is a Prenuptial Agreement?
A prenuptial agreement (also known as a “prenup”) is a contractual agreement entered into prior to marriage. This agreement allows the parties to determine how assets and debts will be divided in the event of divorce or the death of a spouse. Couples may also choose to enter into a postnuptial agreement, which allows parties to address the same topics as a prenuptial agreement, but it is completed after the parties marry.
What Can Be Included in a Prenuptial Agreement?
Prenuptial agreements are very customizable and allow parties to address concerns about finances and how property will be treated during marriage or in the event of a divorce. This can include whether a party will receive alimony, how real property will be divided, pet custody, division of financial accounts, and division of debt. In the event of the death of a spouse, a prenuptial agreement may also specify who is responsible for paying for any medical debts, how certain assets are to be divided, and whether the surviving spouse may continue living in the marital home. A prenuptial agreement can not address the issues of child support and child custody.
Why Should I Get a Prenuptial Agreement?
The last thing that most divorcing couples want to do is endure the drawn-out process of dividing marital debts and assets. By creating a prenuptial agreement, divorcing couples can avoid additional emotional burdens and the undue cost of a lengthy settlement process or litigation. Prenuptial agreements can be especially beneficial to couples that either jointly or separately own a business, have children from a previous relationship, and when there is a significant wealth disparity between the parties. Every state has default laws about how to divide a couple's assets upon divorce when no agreement is in place, but a prenuptial agreement can allow a couple to provide for an arrangement that works best with their relationship. In the case of the death of a spouse, a prenuptial agreement can provide answers to many of the unknowns of asset and debt division and give the surviving spouse more peace of mind during an emotional time.
How Do I Make Sure my Prenup is Enforceable?
Tennessee law mandates certain requirements to be met for a prenuptial agreement to be enforceable. One of these requirements is that the parties enter the agreement in good faith and without duress. Our attorneys use best practices in drafting these agreements so that they withstand any challenges of invalidity or unenforceability.
Our knowledgeable team at Digby Family Law, PLC welcomes the opportunity to assist you. Contact us today via our online form or by phone at (615) 997-3741 to schedule a consultation.