Understanding Antenuptial Agreements
An antenuptial agreement (commonly referred to as a prenuptial agreement) is a legally binding contract created by two individuals before their marriage. This essential document outlines each party’s assets and debts and specifies how these will be handled in the event of divorce or the death of one party. For residents of Minnesota, the legal framework surrounding antenuptial is governed by Minnesota Statutes § 519.11 and case law. Interpretation of Minnesota’s legal authority governing antenuptial agreements is a developing area of law given the significant statutory revisions enacted in 2024.
Can Antenuptial Agreements Be Set Aside?
In certain circumstances, an antenuptial agreement may be deemed unenforceable. The burden of proof lies with the party challenging the antenuptial agreement, who must demonstrate sufficient grounds for the agreement to be set aside. Examples may include failure to make a full and fair disclosure of the earnings and property of a party or if a party had not had an opportunity to consult with legal counsel of their own choice.
Why Consider an Antenuptial Agreement?
Contrary to the belief that an antenuptial agreement signifies planning for divorce, it is actually a proactive step toward financial responsibility and clarity for both partners. A well-structured antenuptial agreement can protect both parties’ assets, ensure accountability for individual debts, and provide financial stability for children from previous relationships. This is particularly beneficial for couples marrying later in life, those with significant separate property, or individuals with children from prior relationships or marriages.
Without an antenuptial agreement, state law determines the division of marital property during a divorce. In Minnesota, which follows equitable distribution principles in divorces, courts consider numerous factors when dividing assets. An antenuptial agreement allows couples to exert greater control over their financial futures. Further, if the marriage ends by death of a party, an antenuptial agreement can ensure that children from prior relationships or marriages receive a portion of the deceased estates.
Key Components of an Antenuptial Agreement
A thoughtfully drafted antenuptial agreement can facilitate clear communication between partners about financial expectations. Key elements often included are:
- Full disclosure of all financial information, including income, assets, and debts.
- Detailed listing of each partner’s separate property.
- Limitations on liability for debts incurred by the other spouse.
- Protection for businesses established prior to marriage.
- Spousal maintenance (alimony) provisions, detailing potential support obligations.
- Arrangements for inheritance concerning children from previous relationships.
- Responsibilities regarding household expenses and joint finances.
- Confidentiality clauses to maintain privacy.
Benefits of Having an Antenuptial Agreement
Establishing an antenuptial agreement can strengthen a marriage by encouraging open discussions about financial habits, goals, and responsibilities—areas commonly linked to divorce. An antenuptial agreement not only safeguards marital assets from creditors but also shields businesses from potential dissolution due to divorce. For non-working spouses, antenuptial agreements can help secure their financial rights in the event of separation. Ultimately, having an antenuptial agreement can reduce conflict and costs associated with divorce, streamlining the process for both parties.
Why Choose Lommen Abdo, P.A.?
Lommen Abdo, P.A. has proudly served as counsel in several of the most significant trial and appellate cases involving antenuptial agreements in the last thirty years, showcasing our expertise and commitment to this crucial area of family law. Our firm’s combined experience instills confidence in clients, knowing their cases—whether they involve challenging or enforcing an antenuptial agreement or drafting one—will be handled with the utmost professionalism and care. We understand the complexities of these agreements and are dedicated to providing strategic, informed guidance tailored to each client’s unique situation and goals.