Congratulations on your upcoming nuptials! When it comes to planning for the future, many couples are turning to prenuptial agreements (prenups) to safeguard their assets before tying the knot. In Utah, as long as your prenup meets certain requirements and is executed correctly, it can be a great way to protect both of you. Let’s explore how prenups work in Utah, what makes them valid, and why they might be a smart choice for your relationship.
What exactly is a prenup?
A prenup (also known as a premarital agreement in Utah) is a contract you and your fiancé enter into before you get married. It lays out how you’ll divide your property, handle any debts, and manage other financial details if things don’t work out later on. After all, better safe than sorry. You can even add certain terms that will apply during the marriage, such as whether or not to use joint bank accounts while married.
Think of it like a plan for your marriage, and also what happens if the marriage doesn’t go as expected. It can decide who manages and owns what property, who’s responsible for what debt, and whether anyone will get spousal support. And the best news? Prenups aren’t just for the wealthy! It’s a good idea for anyone who wants to avoid potential headaches down the road.
Do prenups work in Utah?
Yes! As long as your prenup complies with state requirements. To be enforceable in Utah, a prenup must comply with the requirements outlined in the Utah Uniform Premarital Agreement Act. Based on the Act, a Utah prenup must be drafted under specific guidelines that include:
- The prenup must be in writing.
- Both future spouses must sign the prenup.
- Both future spouses must voluntarily sign the prenup (no fraud, duress, or coercion).
- The terms of the prenup must be lawful (no criminal, illegal, or against public policy terms).
- Both future spouses must disclose their complete financial information, including a detailed list of assets, income, and debts.
Do prenups actually hold up in court?
You bet! A Utah prenup may hold up in court as long as it’s executed according to the requirements outlined above. Let’s take a look at these requirements in a little more detail.
- Voluntary Agreement: Both fiancés need to agree to the prenup willingly, without any pressure (coercion, duress, undue influence) from the other.
- Full Financial Disclosure: We cannot emphasize this enough. You both have to fully disclose your assets (i.e., bank accounts, real estate, retirement accounts, etc.) and debts. If one fiancé hides information from the other, the prenup may not be enforced.
- Execution Requirements: Your prenup must be written down and signed by both of you. A verbal agreement won’t cut it. Although Utah does not require you to notarize the agreement, we recommend that you do so as an added layer of protection.
- Fair and Reasonable Terms: Your prenup should be fair and reasonable both at the time of signing and at the time of enforcement. Keep in mind that fair doesn’t necessarily mean 50/50. But if your prenup is deemed excessively unfair or one-sided, a court might not enforce it.
- Unlawful Terms: The prenup can’t include anything illegal or against public policy, including clauses that incentivize divorce. This basically means that you can’t include terms that encourage someone to file for divorce. For example, clauses that award money during the marriage, but even more money in the event of a divorce. A Utah court can choose not to enforce an entire prenup if it includes terms that incentivize divorce. Neilson v. Neilson, 780 P.2d 1264 (Utah Ct. App. 1989).
- Legal Representation: This is not a legal requirement in Utah. However, it may be a factor that a Utah court considers when determining if your prenup is enforceable. In other words? It may be a good idea for both parties to consider securing their own representation. If your partner contests the prenup later on, the court might look at whether both parties had legal representation when deciding if the prenup is valid.
What voids a Utah prenup?
In Utah, certain circumstances can render your prenup enforceable. According to Utah Code § 30-8-6, here’s what could potentially void your prenup:
- The agreement was not voluntarily executed.
- The agreement was fraudulent when it was executed.
- Nondisclosure of property or financial obligations to the other party when the other party has not expressly waived the right to disclosure in writing.
- Nondisclosure of property or financial obligations to the other party when the other party had no independent knowledge of the financial obligations.
What can you include in a Utah prenup?
In Utah, a prenup lets you lay out the ground rules for your finances and property before you say, “I do.” Here’s a quick, non-exhaustive rundown of the types of clauses that you can include:
- Division of Property: If things don’t work out, decide how you’ll divide up property, such as homes, cars, and other assets.
- Debt Responsibility: Outline how debts will be managed and divided. This can include credit card debt, student loans, and other liabilities.
- Spousal Support: In Utah, spousal support is called alimony. Decide whether either party will receive alimony in the event of a divorce and, if so, how much and for how long.
- Inheritance Rights: Define how inheritance and gifts received by either spouse during the marriage will be treated, including whether they remain separate or become marital property.
- Distribution of Assets upon Death: Outline certain estate planning aspects, such as waiver of inheritance (i.e., if one spouse will waive their right to your separate property). The full distribution of your assets is covered in a last will, but having a prenup as a supplement is a good idea, too.
- Conflict Resolution: If you decide to include an “ADR” (Alternative Dispute Resolution) section in your prenup, it will outline your goal of resolving any disagreements amicably if the marriage ever ends in divorce.
- Health Insurance and Medical Expenses: Address who will be responsible for health insurance and medical expenses following the divorce if this is allowable by your insurance company.
What can’t you include in a Utah prenup?
A few things. Decisions about who will have custody of your children and how parenting will be handled cannot be determined in a prenup. These issues are decided based on the best interests of the child at the time of separation or divorce. Similarly, you can’t use a prenup to waive or limit child support obligations. Child support is governed by state guidelines and must be addressed separately.
As we’ve already mentioned, any terms that are illegal or against public policy, such as committing a crime or requiring one party to violate the law, also cannot be included.
While prenups don’t have to be 50/50 regarding how you decide to divide everything, terms that are grossly unfair or one-sided might not be enforceable. Utah courts look for agreements that are equitable and don’t leave one party at a severe disadvantage (i.e., requiring public aid or government assistance).
Main Takeaway
A prenup can be a valuable tool for managing expectations and protecting your assets in the event of a divorce. In Utah, prenups can hold up in court if they’re done right. To make sure yours is enforceable, keep it fair, be upfront about your assets and debts, and avoid anything that isn’t legally allowed. With HelloPrenup, you can get a prenup from the comfort of your own home that addresses everyone’s interests, no matter what the future holds.
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