Indiana Law Blog
A prenuptial agreement (commonly known as a “prenup”) can be a powerful tool for protecting assets and setting clear financial expectations before marriage. However, not every prenup will hold up in court. In Indiana, specific rules determine when a prenup is enforceable.
Is there a large financial disparity between you and your future spouse? Do you have a specific house, account, or asset that you want to protect from divorce? This is the contract that can safeguard your future.
Basic Requirements for Enforceability
Under Indiana law, a prenup is enforceable if it meets these basic requirements:
- Voluntary agreement: Both parties must sign the agreement voluntarily, without coercion or duress.
- Full disclosure: Each party must provide a fair and reasonable disclosure of their financial situation before signing.
- Fair and reasonable terms: While Indiana does not require that terms be strictly equal, they must not be unconscionable.
Situations That Could Invalidate a Prenup
A prenup might be deemed unenforceable in certain situations, such as:
- One spouse was pressured into signing it close to the wedding date.
- One spouse did not fully disclose assets, debts, or income.
- The agreement is extremely one-sided and would leave one spouse in serious financial hardship.
- The agreement includes illegal or non-financial terms (like agreements about child custody or child support, which cannot be decided in a prenup).
Timing and Independent Counsel
Prenups signed well in advance of the wedding and with each party having independent legal counsel are more likely to be upheld. These steps demonstrate that both parties fully understood the terms and entered the agreement willingly. We generally recommend that each party retains his or her own attorney, to avoid any conflicts of interest down the road and to make sure both parties get the necessary explaination and advocacy in the preparation and execution of the document.
Modifying or Revoking a Prenup
After marriage, a prenup can be amended or revoked if both spouses agree in writing. It’s important to handle such changes formally to ensure they remain enforceable.
Final Thoughts
A carefully drafted and fairly negotiated prenup can provide peace of mind and financial clarity for both spouses. However, it’s essential to follow Indiana’s legal requirements closely to ensure enforceability.
If you’re considering a prenuptial agreement or want to understand whether an existing one is enforceable, the attorneys at Harshman Ponist Smith & Rayl, LLC can guide you through every step. Contact us today to schedule a consultation and protect your future.