Do I Need A Prenuptial Agreement?
Prenuptial agreements (also called premarital agreements or prenups) are the best way to preserve the wealth a party brings into a marriage. This type of document aims to protect what you purchase or earn during a marriage, an increase in the value of your assets, and assets, gifts and inheritances earned before and during your marriage. Prenuptial agreements are powerful tools to provide you certainty and control over wealth in the event of divorce or death.
Iowa law gives deference to prenuptial agreements in the division of property in the event of a divorce. Iowa courts will not interfere with a couple’s ability to negotiate with one another before marriage regarding how to divide their assets and liabilities if a divorce occurs or one of the parties dies. In other words, courts don’t insist on equity or “fairness” as part of a prenuptial agreement. It is understood that the purpose of the agreement is to preserve a specific asset or identify before the marriage what each party will receive in the event of a divorce.
However, there are certain circumstances when a court will find a prenuptial agreement is not enforceable and will refuse to apply its terms. Those circumstances include:
If a party did not voluntarily sign the agreement. If you were forced or tricked into signing your prenuptial agreement, the courts will not enforce it.
If the agreement was unconscionable when it was signed. If your prenuptial agreement is extremely unfair to one party or your spouse abuses its power, the court will not enforce it.
If a party was not provided a fair and reasonable disclosure or knowledge of the other party's property or financial obligations. You have the right to a detailed disclosure of your spouse’s asset and debt values, as well as detailed income information as part of the prenuptial negotiations . You also must share your information with your spouse in creating your prenuptial agreement. The goal here is to convey the “true nature” and extent of your financial position, and vice versa. If either of these aspects is missing, the court may not enforce your prenuptial agreement.
It is important for both parties to have independent counsel in the preparation or review of the prenuptial agreement to ensure the agreement is properly written. You are allowed reasonable time to seek legal advice and input into the final terms of the agreement, though be warned that Iowa courts do not define how much time “is reasonable.”
Moreover, while parties can negotiate terms of the division of their property, they may not negotiate away a right to alimony or limit terms of alimony in a prenuptial agreement under Iowa law. Also, you may not negotiate away the ability of a party to receive attorney fees if a divorce occurs.
Prenuptial agreements are not just for people on their second (or more) marriage. People do not need a lot of wealth before marriage to enter into a prenuptial agreement. In fact, many families use prenuptial agreements to preserve generational wealth. Business owners use prenuptial agreements to protect business interests and their abilities to deal with their assets as they need or desire without upsetting business partnerships or real estate transactions. Today, millennial couples are using prenuptial agreements if they grew up with single or divorced parents because they want to avoid or limit conflicts if they find themselves in a divorce.
Contact a Prenuptial Agreement Attorney Today
The family lawyers of CashattWarren Family Law can help you draft a proper prenuptial agreement. We provide legal counsel and support to ensure that your prenuptial agreement is enforceable. Even if you never get divorced, having a prenuptial agreement is a good resource to limit conflict and litigation in the future. To talk with an expert family law attorney today, contact our office by phone at 515.421.9290.
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