Marriages most often do not begin with their end in mind. It is safe to say that the vast majority of couples planning for marriage anticipate "To death do us part" and the phrase "Yours, mine, and ours". In most circumstances, this noble goal is enough to set the terms and tone of a marriage for success. But each marriage has its own unique dynamic, whether it be a vast difference in each person's wealth, the joining of two families, children from prior marriages, family inheritances, or any number of factors that are unique to the couple's own relationship.
Couples in a variety of circumstances may wonder if they should have a Prenuptial Agreement to protect their assets prior to their new union. But what is a Prenuptial Agreement, and who should have one?
Prenuptial agreements, also called "Premarital Agreements" under Utah Law, are a contract between the two people which is entered into prior to their marriage. There is no requirement for either person to give or pay anything at the time the Agreement is formed in order to be valid (called "consideration"). A Prenuptial Agreement may address and specify each person's rights of ownership in specific property which is brought into the marriage. It may also address terms of spousal support should the marriage terminate in divorce, how property may be divided if the marriage ends, rights to life insurance policies, and even specify which property may be given to the children of each person in the marriage upon death or divorce.
Prenuptial Agreements, despite their validity, are not for everyone. Although Prenuptial Agreements can have practical effects to address any property brought into a marriage or unforeseen circumstances in the future, addressing these Agreements can be an entirely different matter, and may not be appropriate for all marriages. If you are considering a Prenuptial Agreement, it is important to discuss this with your future spouse in depth to understand the purposes of an Agreement and your concerns that lead to you it. For most married couples, particularly young couples of similar wealth and backgrounds, an Agreement may not be necessary. Even more, suggesting an agreement can put an immediate sense of distrust in the marriage, and cause one or both parties to question the "to death do us part" or "yours, mine, and ours" commitments of marriage.
That said, there are situations in which a Prenuptial Agreement is appropriate. For example, a couple with children from prior marriages may want a prenuptial agreement to clarify that any property interests they have prior to a marriage will be distributed to their own children, thus protecting a legacy built for their children prior to a marriage. Another couple may have one spouse who stems from humble means while the other has a very high net worth, causing family members to worry what may happen to their own family legacy in light of the couple's marriage.
Simply put, while Prenuptial Agreements may rarely become necessary for couples, when those rare instances do arise, they can be crucial to protecting a variety of interests for both parties and avoiding future concerns causing strain on the relationship.
So how do courts treat these Agreements? Prenuptial Agreements, while often heard about in movies, books, news stories, and even reality television, are not always looked at in positive light by courts. Utah for example has statutes specifically addressing how Prenuptial Agreements should be created, what they can include, and, perhaps more importantly, when they will not be enforced. Courts, when considering the validity of a Prenuptial Agreement, will consider the circumstances under which the Agreement was signed, including how close to the wedding it was raised to the other party that may have created a sense of coercion, whether there was fraud, whether the parties fully understood what the Agreement said, and even whether the marriage was valid in the first place. That said, Utah recognizes that circumstances do exist to justify these Agreements and will enforce them barring a legal reason not to.
If you are considering a Prenuptial Agreement, contact us to discuss the pros and cons of them, whether they are appropriate and/or will be considered enforceable in your circumstances, whether they are necessary at all for your specific situation, and how it may address your concerns entering into a marriage.
