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Prenuptial Agreements: A Comprehensive Guide for All Couples

Learn everything you need to know about prenuptial agreements, how they protect your assets, and why they're valuable for couples with children, young couples, blended families, and those with significant assets.

Introduction

A prenuptial agreement (commonly called a 'prenup') is a legal contract created by two people before they marry that typically outlines how assets and debts will be divided in the event of divorce or death. While often associated with wealthy individuals protecting their fortunes, prenups serve many practical purposes for couples across various life situations. This document can help clarify financial rights and responsibilities, protect family businesses, shield one spouse from the other's debts, and establish clear guidelines for property division. Whether you're entering marriage with children from previous relationships, significant assets, or simply want clarity about your financial future together, understanding prenuptial agreements is an important step in building a secure foundation for your marriage.

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Key Things to Know

  1. 1

    Prenuptial agreements must be executed well before the wedding (at least 30 days is recommended) to avoid claims of coercion or duress.

  2. 2

    Both parties must provide complete and honest financial disclosure for the agreement to be valid.

  3. 3

    Each person should have their own independent legal counsel review the agreement before signing.

  4. 4

    Prenups cannot determine child custody or child support amounts, as these must be decided based on the best interests of the child at the time of divorce.

  5. 5

    The agreement should be reviewed and potentially updated after major life events such as the birth of children, significant inheritance, or substantial changes in financial circumstances.

  6. 6

    State laws vary regarding prenuptial agreements, so it's essential to work with an attorney familiar with the laws in your jurisdiction.

  7. 7

    A well-crafted prenup promotes financial transparency and communication, which can strengthen your relationship rather than undermine it.

  8. 8

    For blended families, a prenuptial agreement should work in conjunction with your estate plan to ensure children from previous relationships are protected.

Key decisions before you file

Before you file a Prenuptial Agreement in Minnesota, a few decisions shape the document: which option to choose and what each one means. The Prenuptial Agreement guide walks through them.

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Minnesota Requirements for Prenuptial Agreement

  • Statutory Authority (Minnesota Statutes § 519.11)

    The agreement must comply with Minnesota's Uniform Premarital Agreement Act which governs the creation, enforcement, and limitations of prenuptial agreements in the state.

  • Full and Fair Disclosure (Minnesota Statutes § 519.11, subd. 1)

    Both parties must provide complete and accurate disclosure of all assets, liabilities, and income prior to signing the agreement. Failure to disclose may render the agreement unenforceable.

  • Voluntary Execution (Minnesota Statutes § 519.11, subd. 1)

    The agreement must be entered into voluntarily, without duress, fraud, or undue influence. Courts may invalidate agreements signed under pressure or coercion.

  • Independent Legal Representation (Minnesota Statutes § 519.11; McKee-Johnson v. Johnson, 444 N.W.2d 259 (Minn. 1989))

    Each party should have the opportunity to consult with independent legal counsel before signing. While not absolutely required, lack of independent representation may be a factor in determining enforceability.

  • Execution Timing (Minnesota Statutes § 519.11, subd. 1)

    The agreement must be executed before the marriage. Agreements made after marriage are considered postnuptial agreements and are subject to different and more stringent requirements in Minnesota.

  • Written Requirement (Minnesota Statutes § 519.11, subd. 2)

    The prenuptial agreement must be in writing and signed by both parties to be enforceable. Oral prenuptial agreements are not valid in Minnesota.

  • Child Support Limitations (Minnesota Statutes § 518A.38; Tamimi v. Tamimi, 328 N.W.2d 761 (Minn. 1983))

    Provisions attempting to waive or limit child support obligations are unenforceable as they violate public policy. Courts retain jurisdiction over child support matters regardless of prenuptial terms.

  • Child Custody Limitations (Minnesota Statutes § 518.17)

    Provisions attempting to predetermine child custody arrangements are not binding on courts, which will make determinations based on the best interests of the child at the time of divorce.

  • Unconscionability Review (Minnesota Statutes § 519.11; In re Estate of Kinney, 733 N.W.2d 118 (Minn. 2007))

    Courts may review prenuptial agreements for unconscionability both at the time of execution and at the time of enforcement. Agreements that are grossly unfair may be set aside.

  • Public Assistance Provisions (Minnesota Statutes § 519.11; Kremer v. Kremer, 912 N.W.2d 617 (Minn. 2018))

    Provisions that would cause a spouse to become eligible for public assistance may be unenforceable as contrary to public policy.

  • Marital Property Definition (Minnesota Statutes § 518.003, subd. 3b)

    The agreement must clearly define what constitutes marital property versus separate property, consistent with Minnesota's marital property laws.

  • Spousal Maintenance Provisions (Minnesota Statutes § 519.11; Kremer v. Kremer, 912 N.W.2d 617 (Minn. 2018))

    While parties may waive or modify spousal maintenance (alimony) rights, such provisions may be reviewed for fairness at the time of enforcement, particularly if circumstances have changed substantially.

  • Estate Rights Provisions (Minnesota Statutes § 519.11, subd. 1; Minnesota Statutes § 524.2-213)

    The agreement may address inheritance rights and waiver of elective share rights, but must comply with both Minnesota probate law and the prenuptial agreement statute.

  • Amendment and Revocation (Minnesota Statutes § 519.11, subd. 1)

    The agreement should include provisions for how it may be amended or revoked, which under Minnesota law must be in writing and signed by both parties.

  • Choice of Law (Restatement (Second) of Conflict of Laws § 187)

    If the parties have connections to multiple states, the agreement should specify which state's law will govern its interpretation and enforcement.

  • Sunset Provisions (Minnesota Statutes § 519.11)

    The agreement may include provisions that modify or terminate certain rights after a specified duration of marriage, which are generally enforceable if otherwise valid.

  • Retirement Benefits (29 U.S.C. § 1055(c); Egelhoff v. Egelhoff, 532 U.S. 141 (2001))

    Provisions affecting qualified retirement plans must comply with federal ERISA requirements, including proper waiver forms for spousal benefits separate from the prenuptial agreement.

  • Tax Considerations (26 U.S.C. § 1041; Minnesota Statutes § 290.01)

    The agreement should address potential tax implications of property division and support provisions, consistent with both federal and Minnesota tax laws.

  • Debt Allocation (Minnesota Statutes § 519.05; Minnesota Statutes § 513.41)

    The agreement should specify responsibility for existing and future debts, recognizing that creditors may still have remedies against both spouses regardless of the agreement's terms.

  • Severability Clause (Minnesota common law; Edina State Bank v. Mr. Steak, Inc., 487 F.2d 640 (8th Cir. 1973))

    The agreement should include a severability provision stating that if any portion is found unenforceable, the remainder of the agreement remains valid and binding.

Frequently Asked Questions