Tying the knot in North Carolina soon? Congratulations! It’s an exciting time in your life with lots to do, from wedding planning to buying a new house to family planning. But don’t forget about the roadmap that helps you plan it all: the prenuptial agreement. A prenuptial agreement (prenup) is a contract between future spouses outlining various financial matters. It is meant to protect individual assets, but it can also be a tool to facilitate a stronger foundation for marriage. Before creating a prenup in North Carolina, there are some things to know, so let’s dive in.
1. The laws governing prenups in North Carolina
North Carolina is one of about 28 states in the U.S. that have adopted some form of the Uniform Premarital Agreement Act (UPAA). This provides a standardized legal framework for prenuptial agreements. The UPAA mandates several key requirements:
- The agreement must be in writing and signed
- The agreement must include fair financial disclosure by both parties
- The parties must enter into the agreement voluntarily
- The agreement must not be unconscionable, meaning it cannot be unfairly one-sided
These stipulations are designed to make sure both partners enter the marriage and the agreement with a clear understanding and protection of their individual rights and assets. (See N.C. Gen. Stat. § 52B-1 for the North Carolina Uniform Premarital Agreement Act).
2. You have to disclose your assets fully to your partner
Financial disclosure is required for a prenup to be considered enforceable in North Carolina. Financial disclosure is the sharing of income, assets, debts, and future inheritances between the parties. Specifically, each party must share the value of all of their finances (student loans, income, investments, you name it). If one party omits or hides financial information from their future spouse, it could be grounds for getting the prenuptial agreement thrown out. (See N.C. Gen. Stat. § 52B-7 for the fine print on North Carolina financial disclosure).
3. North Carolina follows equitable distribution property division in a divorce
It’s important to understand what happens to your property if you do not have a prenup in place in North Carolina. The laws in NC follow equitable distribution principles in a divorce without a prenup. This means that a judge will divide your property (both assets and debts) equitably, but not always 50-50. If an equal division is not reasonable, then the judge will look at a list of state factors and apply them to your situation to determine what split would be fair. (See N.C. Gen. Stat. § 50-20 for the details on how equitable distribution works).
With a prenup, you can override this state law to ensure that your property is split up in the manner that you deem fair—not a judge. This allows you and your partner to determine your own destiny and allow you complete control over your assets.
4. If your spousal support waiver leaves one person on public assistance, it may be thrown out
According to N.C. Gen. Stat. § 52B-7(b), if a modification or elimination of the right to spousal support for one spouse would require that spouse to need public assistance, the court can invalidate that clause. For example, let’s say a stay-at-home parent has no independent income but still agrees to waive all spousal support in a prenup. Then, several years later, the couple files for a divorce, and the stay-at-home parent is 100% reliant on the support of the other parent and is unable to support themselves. This ultimately leaves the stay-at-home parent potentially reliant on government benefits. In this case, the court could invalidate that waiver of spousal support.
5. You can’t include matters around children in NC prenups
You cannot include clauses that stipulate around child support or child custody in a North Carolina prenup. According to N.C. Gen. Stat. § 52B-4(b), child support may not be included in a prenup. The reasoning behind this is that it is the child’s right—not the parents’ right—to contract away. In addition, the rights of the child should be decided at the time of the divorce and based on the best interests of the child. A prenup may be drafted up at a time when circumstances are much different and aren’t necessarily reflective of the situation at the time of divorce.
6. You can amend your prenup
Life is always evolving—if things change and you need to make an update to your prenup, you are able to do so in North Carolina, as long as you follow the same laws that are laid out by North Carolina’s UPAA. This means putting the agreement in writing, making sure it’s entered into voluntarily and not unconscionable, and includes full financial disclosure.
However, well-drafted prenups typically address unforeseen future changes, such as unexpected inheritances or future businesses. For example, if you aren’t sure whether or not you’ll become a stay-at-home parent one day, you can include conditional clauses that only take effect if you choose to do so. In addition, you can also include protection for future debt and future assets that don’t exist yet or may never exist.
7. Prenups can help you align as a couple
Prenups are about protecting individual assets, but they’re also about aligning as a couple. The prenup process requires you to decide on certain terms, such as property ownership, joint bank accounts, contributions to assets, spousal support, taxes, and even certain topics around death. In having these conversations, you and your partner will have to align on certain aspects.
For example, does one of you want to stay at home with the children and quit their job one day? If that’s the case, the stay-at-home parent likely won’t want to waive spousal support. This conversation should be thoroughly discussed.
These tough conversations through the prenup process can help create a stronger foundation for your marriage. In fact, 83% of HelloPrenup couples actually felt closer together after completing the process.
The bottom line on North Carolina prenups
As you can see, there are a few things you should know before getting a prenup in North Carolina. You should understand the laws that apply, especially what cannot go into the agreement, like spousal support waivers that leave one person destitute, child custody, and support matters. In addition, it’s important to understand property division laws in NC without a prenup (so you know what laws you are overriding). And don’t forget the most important part—that prenups can help align you as a couple and help you walk into your marriage stronger than ever. So, now that you’re up to speed—it’s time to get your prenup journey started. Happy planning!
Kelsey Connelly has a diverse legal background. She has managed foreclosure-related litigation for financial servicing corporations, led litigation for family law matters in private practice and handled transactional deals and title reviews in residential real estate. With years of litigation experience, Mrs. Connelly represents clients in court and settlement negotiations from the beginning of the case to its resolution.Mrs. Connelly graduated from the University of North Carolina at Charlotte with a degree in Psychology. She then earned her law degree from Charlotte School of Law.Mrs. Connelly enjoys spending time with her family, traveling to new places, and teaching Pure Barre as a certified instructor in her free time.
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