Prenuptial Agreements
Prenuptial agreements (also called “antenuptial agreements”) are recognized and enforceable in Tennessee. This type of agreement is a contract entered into between two people in anticipation of marriage, and allows them to establish some parameters as to how their financial and property rights will be affected in the unfortunate event that the marriage is not successful.
People often have a negative reaction to the idea of a prenuptial agreement. They often comment that – “If you don’t trust the other person, or if you think the marriage will fail, then why even bother to get married?” While this initial gut-level reaction may be understandable, the reality is that a prenuptial agreement can often be a valuable tool in providing financial security and peace of mind for both of the parties involved.
For example:
- Many couples find themselves entering into a marriage where one or both of the individuals have children from a previous relationship. Given the realities of divorce, it is understandable that – no matter how excited someone might be to get married – each person may want to make sure that their new union does not in any way jeopardize their ability to provide financial support and security for their existing children.
- Prenuptial agreements may also help provide necessary assurances to third parties – allowing the couple to enjoy financial opportunities that they would otherwise be unable to achieve. Understandably, many small or family-owned businesses are hesitant to share ownership with someone when – in the unfortunate event of divorce – that person may be required to break apart the business. Entering into a prenuptial agreement may allow you and your potential spouse to inherit or acquire assets that will allow you both to enjoy an improved lifestyle during your marriage.
- Other factors that may necessitate the entry of a prenuptial agreement include, but are not limited to: when one of the parties is entering the marriage with far more significant assets or debts; when one of the parties has issues with financial responsibility; or when one of the parties has a drug or alcohol dependency.
If you are contemplating marriage and considering whether a prenuptial agreement is right for you, I strongly advise that you contact me at your earliest possible convenience. Because a prenuptial agreement is a contract, it must meet certain legal requirements before it will be recognized and enforced in Tennessee. Beginning the process well in advance of the wedding will help ensure that those requirements are sufficiently addressed. It is important that both parties are given an opportunity to fully contemplate the agreement before it is entered. You will want to have sufficient time to make sure that each party has an opportunity to seek independent counsel, and that the assets and liabilities of each party have been properly documented and fully disclosed. The agreement must be entered into in good faith and each of the parties must be acting freely, voluntarily, and with knowledge of their rights.
If you are contemplating marriage and have been asked to enter a prenuptial agreement, or simply feel that such an agreement may be in your best interest, please feel free to call the number listed above, send an email, or use the contact page.