A Tennessee prenuptial agreement is a contract between future spouses to specify how to divide their property, assets, and debts in case of death or divorce. These agreements are particularly beneficial for managing financial matters, including business ownership and avoiding substantial alimony payments.
These agreements’ enforceability depends on several factors. While Tennessee hasn’t adopted the Uniform Premarital Agreement Act (UPAA), it has other statutes guiding the creation of these documents. It also relies on precedents in case law.
Laws:
Signing Requirements: Both parties must provide their signatures, but it’s good practice to also have a notary public acknowledge the signatures (§ 36-3-501).
Dividing Property: Equitable distribution (§ 36-4-121).
Tennessee law (§ 36-3-501) states that spouses should enter this agreement freely and knowledgeable, which requires each person to make a full disclosure of the assets and liabilities they have.
Case law further expands upon this subject, as evident in Grubb v. Grubb, No. E2016-01851-COA-R3-CV (Tennessee 2017). This case dealt with the ambiguities of full disclosure. The question was whether the husband properly disclosed his holdings because the wife had separate knowledge without an intentional disclosure.
In this case, the court ruled in the wife’s favor because she was less wealthy and didn’t have the proper financial knowledge to understand her husband’s situation without a direct disclosure.
The agreement should benefit both parties equitably, and the parties should execute it without the exertion of undue influence.
A prenup shouldn’t unfairly disadvantage creditors, particularly relating to the value secured to the wife and children compared to the husband’s estate.
A husband is not liable for obligations or debts his wife incurred before marriage.
Married women should keep their rights to make contracts and manage, hold, acquire, and dispose of property as if they weren’t married.
Even though independent counsel isn’t a legal requirement, each party needs to have independent counsel so they fully understand their rights.
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