Description of a Marriage Agreement
Marriage agreements, also known as prenuptial or premarital contracts, are useful tools to decide the disposition of property, alimony and other marital assets in the event of a divorce.
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History
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Premarital contracts originally evolved in English common law, when families would attempt to protect their daughters who were contemplating marriage. Originally, premarital contracts were negotiated with the intent of ensuring that the wife would retain control of her property during marriage. In early American history, the premarital contract evolved into an instrument used to protect the children of prior marriages, before attaining its current status as primarily a property-division tool.
UPAA
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The Uniform Premarital Agreement Act (1983) sets forth rules on what property may be disposed of in a premarital agreement, as well as formalities required for the agreement's execution. The UPAA allows a prospective spouse to waive all spousal and property rights via the agreements, although it also allows a court to require spousal support if the lack thereof would force a party to receive public assistance.
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State Laws
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Most states have embraced sections of the UPAA, but each state has created its own law on property disposition upon divorce, as well as its own requirements for what constitutes a valid premarital agreement. California, for instance, will not find a spousal support waiver to be valid unless the waiving spouse had independent counsel and seven days' time to consider the agreement before signing. Parties considering entering into a premarital contract are strongly advised to seek independent legal counsel familiar with state law.
Contract Requirements
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Premarital agreements are generally subject to all the formalities of contract law. Although each state may establish its own formalities for contractual agreements, certain principles of general contract law will govern construction of the contract. For instance, the premarital contract will need to be in writing and signed by all parties, and there can be no duress or undue influence applied in the execution of the contract.
Policy Considerations
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All states will invalidate a premarital agreement that encourages divorce. Generally, such encouragement translates into an economic benefit to be conferred to one party upon divorce. For instance, in the California case of Marriage of Noghrey, the prenuptial agreement guaranteed the wife the greater of $500,000 or half of her husband's assets, whichever was greater, in the event of a divorce. The court ruled that this arrangement clearly encouraged dissolution, and was therefore invalid.
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References
Resources
- Photo Credit signing a contract image by William Berry from Fotolia.com
