Prenuptial agreements can be a practical and responsible way for Tennessee residents to control their financial futures. They may dictate what happens to assets in the event of a divorce, death or accident. It is important to understand that these agreements are not meant to keep one person down in the event of a divorce or some other unforeseen event. Ideally, they help each party protect whatever they bring into the marriage.
It should also be designed to fairly divide joint assets such as a house in the event of a divorce. A prenuptial agreement may also decide ahead of time what happens to individual assets that appreciate during a marriage. This is important because that appreciation may be considered a joint asset. Prenuptial agreements may help to put a monetary value on a spouse’s willingness to leave the workforce to raise any children that a couple may have.
As taking such a step could reduce that person’s lifetime earning potential, he or she may be entitled to spousal support in a divorce. A prenuptial agreement may help deal with alimony or spousal support issues ahead of time when both parties are likely to take a pragmatic approach to them.
The use of a pre-marital agreement may help an individual protect assets such as a house, business or inheritance in the event of a divorce. An attorney may be able to help create or review any agreement before it is made official. Legal counsel may also be able to review any agreement to ensure its validity in a divorce proceeding. In most cases, a prenuptial agreement must be freely entered into by both parties and it generally cannot contain draconian language or language that violates state or federal law.