Marriage is a joyous time where the future seems bright and full of hope. But life doesn’t always turn out the way we hope it will. In Tennessee, couples have the option to enter into a prenuptial agreement – also known as a “prenup.” In a prenuptial agreement, spouses, before their marriage, can divide assets, keep property and debts separate, and fulfill other obligations should the marriage end in divorce or separation. So, what can you put in a prenup?
Before assets can be divided in a prenuptial agreement, both parties should provide a comprehensive list of their assets, including bank and investment accounts, real estate, personal property, and any outstanding debts or financial obligations. By fully disclosing each other’s assets and debts that were obtained prior to the marriage, both parties can be certain that they are fully aware of each other’s financial situation before agreeing to matrimony. Therefore, transparency is key when creating a prenuptial agreement. In addition to disclosing all existing debts, a prenuptial agreement can outline how future debts and financial obligations will be handled. This can help protect each party from assuming responsibility for the other’s debts acquired after marriage. A prenuptial agreement should clearly state how the property will be divided in the event of a divorce or separation. Courts in Tennessee follow the laws of equitable distribution, which means that marital property is typically divided fairly. However, fairly does not necessarily mean equally. The prenup can establish different guidelines for the division of property than what the law mandates during equitable distribution, allowing couples to decide in advance what will be considered separate property and what will be marital property subject to division.
If one or both parties own a business, the prenuptial agreement should also address how these assets will be handled in the case of divorce or separation. This may involve determining the value of the business or investment at the time of marriage and specifying how it will be treated in the event of separation.
A prenuptial agreement should also address the issue of alimony or spousal support. Alimony refers to the financial support provided by one spouse to the other spouse following a divorce or separation. It can outline the amount, duration, and conditions for the payment of alimony, or specify that neither party will seek alimony in the event of a divorce.
A prenuptial agreement can also include provisions related to the distribution of property in the event of death. This may involve addressing how property and assets will be distributed upon the death of one spouse, ensuring that both parties’ intentions are safeguarded while minimizing potential conflicts. While a prenup cannot completely override a valid will, it can provide additional guidance and clarity.
While it may not be the most glamorous part of wedding planning, a prenuptial agreement can be an essential tool for protecting your financial interests and minimizing potential conflicts in the future. Like insurance, a prenup is not something you do because you’re certain that the worst-case scenarios will occur, but rather it’s something you do because the worst-case scenario may occur. By including the key elements discussed above in their prenup, couples can ensure a more secure future for themselves and their marriage regardless of what happens during the relationship.
At King Law Offices, we understand the challenges involved in any family law matter. Our goal is to help guide you through this process and listen to your concerns. Contact King Law at 888-748-KING (5464) for a consultation. We have offices located across western North Carolina, upstate South Carolina, and Tennessee. We are here to serve you and to guide you as we navigate this journey together.