Alaska Prenuptial Agreements

Dreaming of exchanging vows somewhere between Alaska’s majestic glaciers and breathtaking Northern Lights? I mean… what an unforgettable setting for a love story to unfold! But even in the beautiful state of Alaska, it’s wise to consider a prenup. Practicality is romantic!! Let’s explore everything you need to know about prenups in Alaska.

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Alaska prenup basics

Prenuptial agreements in Alaska is the term for a contract created between two people about to get married. (Yes, you actually have to get married for these contracts to be enforceable). In Alaska, prenups are governed by state case law (i.e., court decisions), as there is no specific state statute governing prenups. Prenuptial agreements in Alaska serve as valuable tools for couples intending to marry, allowing them to establish financial expectations and protect their assets.

What makes an Alaskan prenup enforceable?

So, what goes into making a valid and enforceable prenup in Alaska? Since there’s no statute governing a prenup in this beautiful state, we look to case law for the answers. Here’s what to know:

What makes an Alaskan prenup enforceable:

- Must be in writing and signed by both parties (no verbal agreements)
- Both parties must enter into the agreement voluntarily (no duress or coercion)
- When determining if an agreement was voluntarily entered into, Alaskan courts will consider the amount of time given to sign, the ability to consult with an attorney, and the ability of the parties to understand the agreement–there’s not one factor that has more weight than the other.
- Each party must disclose their finances (no skimping or hiding assets)
- Agreement must not be unconscionable (not unreasonably unfair)
- The circumstances must not have changed so drastically between the couple that it makes it unfair to enforce the prenup.

Overall, the focus of a court when assessing an Alaskan prenup is that the agreement is “legally procured and ostensibly fair”

What can I include in my Alaskan prenup?

Prenuptial agreements in Alaska can address various financial matters, including property division and spousal support. However, it is essential to ensure that the agreement does not violate public policy or involve child custody and support. Matters related to children are determined by the court, based on the best interests of the child, and are not typically subject to prenuptial agreements.

Default laws on spousal maintenance (i.e., alimony)

Without a prenup that waives spousal maintenance, you can end up paying your spouse money during the divorce or after the divorce finalizes. This is called “spousal maintenance” (sometimes called spousal support or alimony). This can be for a specific time or indefinitely, paid all at once or in installments. The amount is decided based on what’s fair and necessary, regardless of who’s at fault for the divorce.

To figure out the amount, the court looks at several things:

How long you were married and your lifestyle during the marriage
Your ages and health
Your ability to earn money, including your education, skills, and work history
Your financial situation, including health insurance
Conduct of the spouses, especially if one person wasted marital money
How the court divided your property
Any other factors the court thinks are important in your specific case

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Default laws on property division in Alaska

Without a prenup, the laws of Alaska and the discretion of a divorce judge will dictate how your property is split up. In Alaska (as is the case in many other states), they sort everything into two categories: “separate property” and “marital property.” Only marital property gets divided during a divorce. Separate property usually stays with the original owner unless it’s absolutely necessary to split it up to be fair to both people.

The way an Alaska court splits up marital property is by dividing it equitably (not always 50-50) (this is known as equitable distribution). The factors a judge will take into consideration when dividing up marital assets include the length of the marriage, the age and health of the spouses, the earning capacity of each party, the conduct of each party, the general circumstances of each party, and more. As you can see, the factors are quite broad in scope, which means an Alaskan divorce judge has great discretion in determining how to split up your assets without a prenup.

How to end a marriage in Alaska

There are several ways to “divorce” someone in Alaska: through “dissolution of marriage” or “divorce,” and yes, they mean separate and distinct things in Alaska. “Dissolution of marriage” is essentially when both spouses agree on certain terms of the separation, such as the distribution of property, child custody, and other matters. This is often called “uncontested divorce” in other states. On the other hand, a “divorce” is when the spouses generally haven’t worked out these issues and need a court to determine how property will be divided, child custody, and other matters. The residency requirements for a divorce in Alaska are simple: as long as one of the spouses can establish domicile in Alaska, a divorce can be filed.

Important prenup case law in Alaska

Case law essentially serves as a record of previous court decisions that provide insights into how laws have been interpreted and applied in real-life scenarios. Lawyers use these past cases to help them understand how the law might affect their clients’ current legal matters. Let’s delve into some significant prenuptial agreement cases in Alaska to gain a better understanding of how courts in the state approach and evaluate prenups.

What happens when one person signs the prenup while intoxicated?

The Supreme Court of Alaska addressed the enforceability of prenuptial agreements in Alaska. The couple in this case (Andy and Abbie) were married for 11 years before filing for divorce. Before getting married, Andy drafted a prenup using a lawyer’s blank template. The agreement contained several blank or missing sections. Abbie first read the agreement the night before their destination wedding ceremony when she was intoxicated (narcotics and alcohol) and exhausted from the events that day. She testified that she was taking narcotics due to pain from an injury Andy had caused her.

Abbie argued (among other things) that she did not voluntarily enter into this agreement and that the circumstances surrounding its execution were unconscionable. She argued that she was intoxicated and exhausted from the travel and wedding events and only saw the agreement the day before the wedding, so she had no chance to get a lawyer if she wanted one.

The result? The Alaska Supreme Court stated the following factors were relevant in determining whether a person enters a prenup voluntarily in Alaska:

– The amount of time to review the agreement’s terms,

– The ability to consult independent counsel, and

– The ability to understand the terms

(No single factor has more weight than the other. It’s an analysis to be done by a court). The Supreme Court sent the case back down to the lower court for more information on whether or not Abbie entered the agreement voluntarily.

Andrew B. v. Abbie B., 494 P.3d 522, 539–40 (Alaska 2021)

What the Alaskan Supreme Court says about prenups (Spoiler alert: they love them)

An Alaskan trial court, and subsequently, the Alaskan Supreme Court, upheld a prenuptial agreement way back in the 80s. The Supreme Court stated that prenups “provide such people with the opportunity to ensure predictability, plan their future with more security, and, most importantly, decide their own destiny.” Brooks v. Brooks, 733 P.2d 1044, 1050 (Alaska 1987).

In this case, an Alaskan couple signed a prenup five days before their wedding in 1978. The prenup was created based on a previous agreement the husband had used with an earlier wife. Neither party had an attorney look it over. Neither spouse fully disclosed their finances to the other. The prenup said:

– Each person keeps their own property they had before getting married.

– Any property or money they get after they’re married will be shared equally.

– If they get divorced, the shared property will be split 50/50.

In this case, neither the trial court nor the Supreme Court questioned its enforceability; thus, the couple’s assets were to be divided accordingly.

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