When Is a Tennessee Prenuptial Agreement Suitable?
When you get married, you may sometimes find that you are wealthier than your future spouse. That doesn’t mean you should reconsider your choice of spouse. Instead, it would be best to plan how you'd mutually use the wealth in your marriage.
Most importantly, you should specify the rights and obligations of each spouse in managing the family's assets. The best approach to financial management is to sign a prenuptial agreement. The contract helps you sort out the complex aspects of wealth division during a divorce.
Read on for more about Tennessee prenuptial agreements.
What Is a Prenuptial Agreement?
A prenuptial agreement or prenup is a formal contract you sign with your future spouse before marriage. Primarily, it constitutes a legal framework on how to divide your wealth in the future if you divorce or one of you dies. For instance, your agreement may include guidelines on disposing of your cars, furniture, real estate, and financial accounts.
A prenuptial agreement is enforceable under Title 36 of the revised codes in Tennessee. Before then, you must finalize a prenup before the wedding, although it becomes effective only after you tie the knot.
When Do You Need a Prenup in Tennessee?
A premarital contract is suitable if you own more significant wealth than your spouse. These may include real estate, money, or other property. It is also ideal to own a property where other family members also have an interest, such as a communal family land.
In Tennessee, a prenup is also essential if:
- You have an enterprise
- You earn more than your future spouse.
- Your future spouse has significant financial liabilities, such as bank loans
- You have children from a previous marriage
How Can You Draft a Tennessee Prenuptial Agreement?
Prenuptial agreements may consist of different terms which require an experienced attorney to negotiate. With the help of an attorney, you can draft the agreement from scratch based on your unique family needs.
First, differentiate between marital and separate property. It depends on what you agree with your spouse. Afterward, you can highlight how to share marital property, specifying each couple’s share in case of divorce.
Besides property division, your agreement should highlight how either spouse will receive alimony if you divorce. The alimony terms may specify the nature, amount, and duration of obtaining the spousal support. Moreover, alimony provisions should be fair and not leave your spouse financially destitute.
You should also specify your preferred "choice of law" in the prenup provisions. The choice of law determines which state will have the jurisdiction to uphold your prenup if you divorce. For instance, if you select Tennessee as your choice of law, a Tennessee court will keep your premarital contract even if you relocate.
Generally, a properly constituted Tennessee prenup should cover the following:
- The distinction between separate and marital property
- How to share marital property
- Additional lawful terms as per the Tennessee divorce laws
Is a Prenuptial Contract Enforceable in Tennessee?
Yes. Prenuptial agreements are legally enforceable and must meet the legal requirements to remain valid.
Make sure to disclose your financial information, including your assets, debts, and the value of your property.
In addition, you should sign premarital contracts voluntarily. A contract may be void due to forceful persuasion, force, or unlawful influence.
Although it is not a requirement under the revised codes, it is advisable to have separate legal representation from attorneys when signing a prenup. Having legal representation helps you understand the legal implications of the contract before signing.
Are you a resident of Tennessee? Consider downloading a free Tennessee prenuptial agreement from our website here.