Prenuptial Agreements

You’re not alone if you’re considering a prenuptial agreement in Memphis, Tennessee. Many couples protect their assets, ensure financial security, and establish clear expectations before marriage. Prenuptial agreements can address a wide range of issues, from property division to alimony and even estate planning. At Douglass & Runger, we help couples craft customized prenuptial agreements that fit their unique needs and circumstances.

What is a Prenuptial Agreement?

A prenuptial agreement, often called a “prenup,” is a legally binding contract between two people before they get married. This agreement outlines how assets, debts, and other financial matters will be handled during the marriage and in the event of a divorce or death. It can also include provisions regarding alimony, inheritance, and even business interests.

For couples considering marriage, discussing a prenuptial agreement can be important in ensuring a clear understanding of each other’s financial expectations.

Prenuptial Agreements: Protecting Your Future

Whether you’re getting married for the first time, entering a second marriage, or owning significant assets or a business, a prenuptial agreement can be valuable. Here are some key reasons to consider a prenup:

Protecting Pre-Marital Assets: A prenuptial agreement ensures that assets you acquired before marriage remain yours if the marriage ends in divorce.

Business Interests: If you own a business, a prenup can help safeguard your interests and clarify what happens to the business if you divorce.

Debt Protection: If one spouse enters the marriage with significant debt, a prenuptial agreement can protect the other from being held responsible for those debts.

Inheritance and Family Wealth: A prenuptial agreement can ensure that family inheritance or wealth stays within your family rather than becoming subject to division during a divorce.

Types of Prenuptial Agreements

There are various types of prenuptial agreements, each tailored to specific needs. At Douglass & Runger, we help you choose the right type of agreement based on your circumstances:

Standard Prenuptial Agreement: This agreement covers typical matters like property division, alimony, and debt responsibility in the event of divorce.

Prenuptial Agreement for Business Owners: This type of prenup protects business assets and outlines how the business will be handled in the event of divorce.

Prenuptial Agreement for Second Marriages: If you’ve been married before, a prenup can protect your assets, especially if you have children from that marriage.

Prenuptial Agreement with an Infidelity Clause: Some couples include clauses that address specific behavior during the marriage, such as infidelity.

Legal Considerations in Tennessee

In Tennessee, prenuptial agreements are enforceable as long as they meet certain legal requirements. The agreement must be:

Voluntary: Both parties must sign the agreement voluntarily, without coercion or pressure.

Fair: The agreement should be fair to both parties at the time it’s signed.

Full Disclosure: Both parties must fully disclose their financial situation, including assets, debts, and income.

Not Against Public Policy: The terms of the agreement should not violate Tennessee’s public policy or be considered unconscionable.

It’s crucial to work with an experienced attorney when drafting or reviewing a prenuptial agreement to ensure that it meets all legal standards and protects your interests.

Common Clauses in Prenuptial Agreements

Prenuptial agreements can cover a wide range of issues, including:

Property Division: How will property and assets be divided in a divorce?

Alimony: Whether one spouse will pay alimony, and if so, how much and for how long?

Debt Responsibility: How debts will be handled during the marriage and after a divorce?

Inheritance Rights: How assets will be passed on to heirs, particularly in cases where one or both parties have children from a previous marriage?

Business Ownership: How will business assets and interests be handled in the event of a divorce?

Prenuptial Agreements vs. Other Legal Tools

It’s important to understand the difference between a prenuptial agreement and other legal tools like wills, trusts, or postnuptial agreements:

Prenuptial Agreement vs. Will: A prenuptial agreement focuses on what happens during marriage and at the time of divorce, while a will dictates how assets are distributed upon death. Having both in place is possible, and they should complement each other.

Prenuptial Agreement vs. Trust: Trusts can help protect assets during life and after death, often in a way that a prenup alone cannot. In some cases, couples use both tools to provide more comprehensive protection.

Prenuptial Agreement vs. Postnuptial Agreement: While a prenup is signed before marriage, a postnuptial agreement is entered into after marriage. Postnuptial agreements are often used when couples experience significant life changes, like a business acquisition or inheritance.