About to say, āI doā in the Hoosier State? Congrats! While youāre busy with cake tasting and venue shopping,Ā donāt forget one of the most crucial steps on your wedding to-do list: The prenuptial agreement. But where do you start? First, itās important to understand the legal requirements in Indiana and what happens if you donāt get a prenup. We discuss this and much more, so keep reading to learn about the five things you need to know before getting a prenup in Indiana.
1. The law governing prenuptial agreementsĀ
Indiana has adopted the Uniform Premarital Agreement Act (UPAA), which is a uniform law meant to establish uniformity across the US when it comes to prenuptial agreement law. This means that Indiana requires the following for a valid and enforceable agreement:Ā
- Must be in writing and signed by both partiesĀ
- Both parties must provide financial disclosure to one anotherĀ
- The agreement must be entered into voluntarily (not under some type of illegal force)Ā
- The agreement must not be unconscionable (meaning itās not overly one-sided and/or unfair)
- No illegal terms may be includedĀ
You can see Indianaās full premarital agreement statute here: Ind. Code Ā§ 31-11-3-1. These laws are meant to protect individuals and help them enter into agreements that are fair and reasonable while still facilitating marital harmony and protecting individual interests.Ā Ā
2. Equitable distribution laws apply without a prenup
In Indiana, without a prenuptial agreement, equitable distribution principles will apply to your property division in a divorce. This means that a judge may be able to divide up your assets in a way that is equitable, not necessarily 50-50. Indiana law mandates that a judge use a set of factors to determine what is fair and equitable in each circumstance. These factors include the contributions of each spouse and the economic circumstances of each spouse. (See Ind. Code Ā§ 31-15-7-5 for the fine print).
Also, a court may divide up the assets you owned prior to the marriage without a prenup. That means if you enter the marriage with a house and retirement account, theyāre not automatically protected as it might be in other statesāit could be subject to division in a divorce. With a prenuptial agreement, you can protect these assets and even future assets not acquired yet. Prenups in Indiana can override these default state laws to ensure your property is managed in the way you want it to be.Ā
3. The importance of financial disclosureĀ
It cannot be stated enough: financial disclosure is crucial to a prenuptial agreement in Indiana. This is the act of each partner sharing the values of their assets, income, debts, and future inheritances (if known). This practice not only creates transparency in the marriage but also puts each party on notice of what rights theyāre actually giving up. For example, understanding the actual income and assets your future spouse owns will help you understand how much potential spousal support you would be giving up in a divorce.
In Indiana, financial disclosure requires each party to write down their income, assets, debts, and future inheritances on a financial schedule and attach it to their prenuptial agreement. The values next to each line item must be truthful and accurate as of the date of the signing of the agreement.Ā
4. Prenups vs. Postnups in Indiana
In Indiana, you cannot just go get a postnuptial agreement after you get marriedāYou and your spouse must be in a state of marital breakdown before getting a postnuptial agreement. For example, Indiana couples cannot use a postnup to simply define marital obligations (as is typically done with a prenup) if their marriage is stable and they aren’t considering divorce.
What does this mean for you? This means that your chance of getting a marital agreement is only prior to the wedding, a.k.a., getting a prenuptial agreement. You canāt skip the prenup and rely on a postnup like you may be able to in some other states. This underscores the importance of getting a prenup in Indiana and serves as a reminder that postnups in Indiana are only for reconciliation purposes.Ā
5. Prenuptial agreements can facilitate marital harmonyĀ
Despite common misconceptions that prenups are adversarialāitās quite the opposite when done right. Going through the prenuptial agreement process in a collaborative way can actually help couples talk about tough topics that they wouldnāt ordinarily discuss prior to walking down the aisle. Things like money management, death, divorce, financial goals, and more. In fact, 83% of HelloPrenup customers agree that they felt closer together after going through the prenup process.
Walking into the marriage 100% on the same page about all things money and life goals leads to a more harmonious relationship and a stronger foundation of trust.Ā
The bottom line on what to know about prenups in IndianaĀ
As you can see, getting a prenuptial agreement is relatively easy in Indianaājust put your contract in writing, sign it, provide financial disclosure, enter the agreement voluntarily, and make sure itās a reasonable and fair agreement. And make sure you fully understand what happens if you donāt get a prenup in Indianaāyou wonāt be able to get a postnup unless your marriage is breaking down, and if you get a divorce, youāll be subject to equitable distribution. The good news? Prenups do more than just protect individual assetsāthey also facilitate marital harmony, making the decision to get a prenup that much easier. Happy planning!
Heather FranklinĀ is a compassionate family law attorney with a focus on helping clients navigate complex legal issues during emotionally difficult times. Her practice is dedicated to helping clients with a range of family law matters, including divorce, custody, parenting time and child support, and prenuptial agreements.
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