For years prenuptial agreements were not enforceable in Kentucky. That all changed with two Kentucky Supreme Court decisions that were handed down in 1990. Those decisions held that prenuptial agreements were enforceable subject to appropriate limitations.
In order to be enforceable, a prenuptial agreement must meet several requirements. First, there must be full disclosure by both parties as to his/her financial status and holdings. The full disclosure of assets rests primarily on the party who intends to rely on the agreement (i.e. the person with the most assets). Courts will usually take a reasonable view of this requirement and, where it appears that a spouse was aware of the other party's assets prior to the marriage, will deem this requirement met.
The agreement must also be freely entered by the parties without fraud, material omission, misrepresentation, duress, or mistake. The court will usually review the agreement to determine if it is unconscionable both at the time it was executed and at the time it is sought to be enforced. If the court finds the agreement to be unconscionable, it may modify so much of the agreement as necessary to satisfy the conscionability requirement, but should otherwise give effect to as much of the agreement as possible as long as there was no fraud or duress in its execution.
It is also wise for both parties to be represented by separate counsel during the negotiation and execution of the agreement. This helps to show that the agreement was entered as an arms length transaction and further combat claims of fraud or duress.
Duress is a complicated issue that the court will look at based on the totality of the circumstances surrounding its execution. As a practical matter, the agreement should be signed as far in advance of the wedding day as possible. Courts have been concerned where agreements are presented to would-be spouses on the eve of a wedding when the church is booked, the guests are arriving, and the possible embarrassment of being "left at the altar" looms large.
Once the agreement is executed and the marriage is solemnized, the agreement may be revoked by the parties. This may be done by physically destroying the agreement itself as with any other contract. A court may also find that the parties through their actions and behaviors have abandoned the agreement.
A prenuptial agreement is a complicated issue that should not be taken lightly. If you choose to enter a prenuptial agreement, be sure you understand all of its provisions and a very particular about the method in which it is executed.
Photo courtesy of Jim Hammer
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