Why Every Couple Needs a Prenuptial Agreement in Kentucky
Interesting fact- before 1990, it was illegal to create prenuptial agreements in Kentucky. The state felt that the agreement only promoted divorce and discouraged the couples.
In 1990, the state's Supreme Court finally approved the signing of prenups, allowing spouses to determine their financial fate if their union ended, perhaps after divorce or death. However, as discussed below, the state set some standards that couples must meet for their prenups to be valid.
How Do Prenuptial Agreements Work?
A prenuptial agreement, otherwise known as a premarital agreement or antenuptial agreement, is a contract drafter before two spouses get married. The document establishes how the couple wants their marital assets to be distributed if they end in legal separation or divorce. It also outlines how the properties should be handled in case of the death of one of the spouses.
A prenuptial agreement is beneficial to any couple, regardless of their financial capacity and social status. But mostly, it is a must-have contract if;
- You own many premarital assets or business and retirement accounts that you wish to retain after a divorce.
- You have children from previous relationships, whose inheritance you wish to protect
- One or both of you bring significant debts to the marriage that your spouse should be aware of
- You feel that you have the potential to make massive wealth in marriage
A prenuptial agreement lets couples decide everything about their finances, thus reducing the chances of fights and litigations related to property and money during marriage and in the event of divorce. This means they will not follow the state law of property division as long as the court enforces their prenup.
What Makes a Valid Prenuptial Agreement in Kentucky?
Kentucky prenuptial agreement signing laws are outlined in Subsection 5, Section 371.010 of the state's Revised Statutes. The provision requires the prenup to be signed by both spouses. Notarization and witnesses' signatures are not mandatory for a valid prenup.
Besides, a valid prenuptial agreement should be fair and just to both parties’ interests. Both spouses should be honest about their assets and debts. They should ensure that all listed information is thorough and correct.
The court may refuse to enforce a prenuptial agreement if it contracts the laws and provisions of the state statutes. For instance, the court will invalidate the agreement if one party was physically or psychologically threatened to sign the deal.
The court will also consider whether both spouses were competent or in the right mental state when signing the document. The prenup is unenforceable if either spouse was suffering from intoxication or mental illness that hindered them from understanding the contract before signing.
The court will deny the prenup if it is unconscionable or contains incorrect information about the spouses' income, assets, and debts.
If a couple wishes to change their prenuptial agreement conditions after getting married, they can do so by signing a postnuptial agreement. The contract is similar to the postnuptial, only that in this case, it is done after the spouses are already legally married.
What to Include in a Kentucky Prenuptial Agreement
Couples can include anything property and money related in the prenup, except children's custody and support issues. A Kentucky prenup covers:
- Property division regulations in the event of divorce
- Spousal support payment by one spouse to the other, the amount and period of payment
- Spouses’ rights and obligations towards individual and jointly owned marital property
- Debts repayment plans in case of divorce or death of a partner
- Each party’s eligibility to death benefits
Don’t hesitate to download a free printable prenuptial agreement form in Kentucky from our site today to view prenup requirements better.