Talking about a prenuptial agreement can be a touchy subject for many couples looking to get married. Nevertheless, such discussions are necessary and important. Marriage drastically changes many parts of a person’s life, including their finances. While many couples may think that such an agreement is only for the wealthy, a prenuptial agreement can provide a couple with peace of mind right at the beginning of the marriage, helping both to know that they are financially protected in the event of a divorce. This agreement can be essential regardless of whether they are paycheck to paycheck or have substantial wealth. A prenuptial agreement helps ensure transparency and honesty in the beginning of a marriage and sets clear expectations.
Tennessee courts recognize prenuptial agreements and interpret them like any other contract. A prenuptial agreement, also known as an antenuptial agreement or “prenup,” is a contract that people wishing to be married can enter into before the marriage. The purpose of a prenuptial agreement is to determine each spouse’s rights in property in the event of a divorce. If there is a divorce, the prenuptial agreement outlines certain terms that will apply. The terms may include agreements about how assets will be distributed, spousal maintenance, and inheritance rights. Prenuptial agreements are favored by Tennessee law, and are generally enforceable if the party seeking to enforce the agreement shows that it was entered into freely, knowledgably, and in good faith and without duress or undue influence. To show that the agreement was entered into knowledgeably, the party hoping to enforce the prenup must provide evidence that a full and fair disclosure of the nature, extent, and value of his/her holdings was provided to the other party, or that they did not need to disclose these things because the other party had independent knowledge of these facts. The best practice might include making the other party aware not only of the fact that an asset exists, but making them aware of the value of the asset. To ensure that certain provisions of a prenuptial agreement are valid, and cannot be invalidated by the other party saying that assets were not disclosed, it may be advisable to have detailed written financial disclosures attached to the agreement and signed by the other party.
Prenuptial agreements are interpreted by Tennessee courts like contracts in general. When interpreting a prenuptial agreement and in considering if the agreement may be void, or certain parts of it unenforceable, Tennessee courts look carefully to ensure that neither spouse may have an unjust advantage over the other by means of any oppression, deception, or fraud. The courts may consider the relative sophistication (in education or business knowledge) of the parties, how long the parties dated or knew each other before the marriage, the fairness or unfairness of the terms of the agreement, whether the other spouse had time to review the agreement, whether the other spouse had the ability to consult with an independent attorney before signing, how close the wedding is to the date of signing, and any other circumstance unique to the couple and their specific situation.
However, if enforcing the prenup would deprive one spouse of income such that he or she cannot otherwise earn through work, and results in that spouse becoming a “public charge,” that provision must be void and the court may award alimony. Where the circumstances have changed over the course of the marriage such that enforcement of the agreement would be unfair because enforcement would likely result in a disadvantaged spouse being unable to provide for his or her reasonable needs, the courts will set aside the relevant portions of the agreement and award the spouse alimony.Tennessee courts recognize that on occasion the health and employability of one spouse may have deteriorated during a marriage so much so that to enforce the provision of a prenuptial agreement waiving alimony would result in the spouse becoming a “public charge,” or in need of public assistance. The State has in interest in providing adequate support for its citizens, and wants to avoid the case of one spouse being deprived alimony if that spouse would then have to seek public assistance because of their lack of employability. The court will consider things like how much prior work experience and education the spouse has, as well as the spouse’s health.
Postnuptial agreements are also recognized by Tennessee courts. These agreements are similar to prenuptial agreements, but they are entered into after the marriage. However, unlike prenuptial agreements where the marriage itself is the consideration for the contract, and given in exchange for the bargain, postnuptial agreements require that there is additional consideration given by the other spouse in order to be enforceable. Tennessee courts can be strict in interpreting provisions of prenuptial agreements that seem unfair, thus, they have to be drafted carefully.
If you or someone you know needs help drafting a prenuptial or postnuptial agreement, or may become involved in a legal dispute over a prenuptial agreement, it is important to act quickly and seek legal assistance. At King Law Offices, we understand the sensitivity and complexity of these situations and are here to help. Our experienced attorneys can guide you through the service process and the rest of your legal issues. Contact King Law Offices today at (888)-748-KING (5464) for a consultation.