Marital agreements, also called prenuptial agreements, are contracts made between fiancés to address certain financial responsibilities during their marriage and in the case of divorce. The inaccurate idea of these agreements as only for the wealthy or as precursing divorce has dissolved over time. A skilled Des Moines, Iowa divorce attorney can help couples draft these agreements.
There are several potential benefits for couples creating prenuptial agreements. They help couples have necessary financial discussions, establish the responsibilities each party has, and can help protect a spouse’s familial wealth or protect one spouse from the other’s debt. However, these benefits only exist when the agreement is legally valid and enforceable by the court.
Understanding a Marital Agreement in Des Moines
A premarital agreement is made by fiancés and becomes enforceable once they are married. The contract determines the abilities and expectations of each spouse relating to property during a marriage. It also determines how that property will be split between spouses if they divorce. A prenuptial agreement can cover some of the following issues in Iowa:
- Each or both spouse’s rights and obligations to property, whenever it is acquired and wherever it is located
- The rights of each spouse to buy, use, sell, lease, abandon, mortgage, dispose of, or manage the property
- How property is distributed when a couple separates, divorces or either party dies
- How property is distributed in other events named by the parties
- Whether a will, trust, or other estate planning tool will be used to enact the marital agreement
- Each spouse’s ownership rights to death benefits from a life insurance policy
- The state law that governs the agreement
- Any other rights, obligations, or other matters, as long as it is not illegal or in violation of public policy
A premarital agreement cannot negatively impact child support or spousal support. Depending on the circumstances, some provisions can affect support positively, although you should discuss this with an attorney. Marital agreements also cannot determine child custody in advance. Court orders involving children must be in the child’s best interests, which can’t be determined before the time of the court order.
Postnuptial agreements are similar to prenuptial agreements but are made after a marriage has already happened.
Legal Requirements of a Marital Agreement
There are basic formal requirements that a premarital agreement must meet, including being in writing and signed by both spouses. The court will refuse to enforce it against a spouse, or a spouse can request a revocation of the agreement without the other spouse’s consent if any of the following occurred:
- The spouse did not sign the agreement voluntarily.
- The agreement was unconscionable, unreasonable, or unfair, as determined by the court.
- There was not a fair disclosure of the other spouse’s financial responsibilities and asset ownership before the spouse signed, and the spouse could not reasonably have known that information.
The court has the discretion when invalidating an agreement, and things like waiving a spouse’s right to financial disclosure may result in a voided provision or agreement. The martial agreement can also be revoked with a written agreement signed by both spouses. If the court determines that parts of the agreement are unenforceable, those provisions are removed from the marital agreement, and the rest is enforced.
If the entire agreement is unenforceable, it will be voided. The most effective way to ensure your premarital agreement is enforceable in court is to work with a prenuptial attorney when creating the agreement. Prenuptial agreements are most beneficial and effective when spouses work together and negotiate their creation. An experienced attorney can help significantly with this process.
FAQs
Q: How Are Marital Assets Divided in Iowa?
A: Marital assets are divided in Iowa according to equitable distribution laws, meaning the court divides the assets based on what it considers to be fair and just. While this split of marital assets may result in an equal division, it often does not. A couple can reach an arrangement outside of court if they do not want to be subject to the court’s discretion. Couples that have a premarital agreement can also avoid the court’s division.
Q: Are Postnuptial Agreements Enforceable in Iowa?
A: Postnuptial agreements are generally void in Iowa, as they are considered against public policy. Iowa has a precedent of enforcing postnuptial agreements made in other states. As long as the state recognizes the agreement, and there is a significant relationship between the parties making the agreement and the state, the state has a choice-of-law provision.
If you are unsure whether a postnuptial agreement you and your spouse made in another state is enforceable, an experienced attorney can help.
Q: How Much Does It Cost to Get a Prenup in Iowa?
A: The cost of a prenup in Iowa will vary based on your attorney’s fees and the specifics of your agreement. While it is possible to draft a prenuptial agreement without an attorney, this is likely to cost you more in the long run. Without an attorney, the agreement is much more likely to be found invalid by the court, and the time and money put into creating the agreement will be wasted.
Q: What Are the Disadvantages of a Prenuptial Agreement?
A: One of the disadvantages of a prenuptial agreement is that it is not worth the time and effort if it is found invalid by the court. Couples that expect a prenuptial agreement to manage their division of assets during a divorce will instead have to either negotiate property division at a much more emotional time in their lives or allow the court to divide assets. This is often what couples are trying to avoid by creating an agreement.
Protecting Your Financial Interests Before Marriage in Iowa
A prenuptial agreement can ensure both spouses understand their obligations and rights to the property they own and the property they get in their marriage. It can also make the process of getting a divorce much more efficient. An experienced attorney at Stange Law Firm can help couples navigate this process. Contact our team today for help.
