Prenuptial agreements may be an effective tool for Tennessee couples who are looking to define the terms of their relationships. However, changes to the tax treatment of alimony may alter the discussion as it relates to what should be included in a specific agreement. Of course, alimony should be just one part of the financial talks that take place prior to negotiating and signing such a pact.
When created properly, they can help a couple avoid a drawn-out divorce in the event that the marriage comes to an end. It can also be used to override or modify state laws regarding property ownership during a marriage. If an estate waiver is used, it could impact the rights of an heir in the event that a person dies while married.
It is important for an individual to know that the law generally considers the prenuptial agreement to be as valid as any other contract. One way that the agreement could be invalidated is if there is evidence that it was entered into under duress. To minimize the chances of this happening, each party to the contract should have it reviewed by their own attorney before signing the document.
A prenuptial agreement may be a useful tool for any couple getting married regardless of how much wealth they have. It may help protect an individual from being responsible for a spouse’s debts if the marriage ends. It could also determine ahead of time what happens to a business or other significant asset that appreciated in value during the marriage.