Antenuptial (Prenuptial) Agreements in Minnesota 

If you’re planning to get married, an Antenuptial Agreement (also known as a Prenuptial Agreement or prenup) is one of the most empowering documents ensuring a bright financial future as a married couple. This agreement thoughtfully provides an opportunity to discuss difficult matters surrounding finances prior to marriage when both parties are permanently bound by each other’s finances. A Prenuptial Agreement provides transparency to both future spouses outlining assets and debts held prior to entering the marriage. In addition to opening discussions about finances and transparency, it provides the opportunity to describe in detail how assets and debts will be divided in the event of a divorce. Like an insurance policy, a Prenuptial Agreement ensures both soon-to-be spouses have taken the time to consider what happens to each other in the worst-case scenario to minimize unanticipated surprises. Protecting assets and debts while clarifying financial expectations fosters financial harmony in a marriage. 

What Can a Minnesota Prenuptial Agreement Protect?

Prenuptial Agreements allow clear and intentional decisions regarding the division of property prior marriage. A properly drafted Prenuptial Agreement helps protect individual assets held prior to the marriage while offering the Court insight how to manage co-mingled assets. It also identifies debts held prior to marriage. A Prenuptial Agreement can outline fair distribution of shared property to minimize potential disputes in the future. Furthermore, it can address various financial responsibilities during the marriage, thereby fostering open communication and mutual understanding of financial expectations through the marriage. Ultimately, a well-structured Prenuptial Agreement serves as a proactive approach to managing a couple’s financial future while reducing anxiety should unforeseen circumstances when clarity is most needed.

1. Protect Nonmarital Property

Absent a Prenuptial Agreement, non-marital property could be co-mingled, which may result in an equal division of the value of the property instead. Arguments around co-mingled property can be contentious and expensive to determine. Sometimes, such property requires an expert’s opinion regarding the value prior to marriage, how much was co-mingled during the marriage, and the value as of a valuation date.

2. Establish Valuation of Nonmarital Property

Not everyone saves bank statements from 7 years prior to commencement of a divorce. However, the lack of documentation can subject a non-marital asset to division with the other spouse instead. A Prenuptial Agreement offers proof of the value of an asset held prior to the marriage, reducing the risk the non-marital asset becomes co-mingled or subject to equitable division to the other spouse. This is because Prenuptial Agreements document the value of assets and debts prior to marriage.

3. Prevent Co-mingling of Assets

Absent a Prenuptial Agreement, when nonmarital property is combined with marital property in Minnesota—for example, by depositing inherited funds into a joint account—the property can become “comingled”. Comingled property no longer has the protection of nonmarital property. Thus the comingled property becomes marital property subject to equitable division to the other spouse in a divorce.

4. Set Workforce Participation Expectations

While Prenuptial Agreements likely cannot be used to eliminate spousal maintenance, it can provide a guideline of agreements to curb spousal maintenance issues as best as possible. For example, a Prenuptial Agreement may require spouses take steps to maintain certifications or education requirements if either exits the workforce.  A Prenuptial Agreement can offer an alternative calculation to determine spousal maintenance by setting expectations for duration, potential calculation methods for the amount of maintenance to award, and set a baseline method for alternatives to spousal maintenance. 

5. Waive Rights to an Augmented Estate

Under Minnesota Law regarding “Augmented” estates, a surviving spouse can claim a deceased spouse’s estate even if a will clearly disinherits the spouse. With a Prenuptial Agreement, spouses can demonstrate their intention to waive rights to their share of their spouse’s estate. This intentional waiver offers the Court additional assurances that both spouses knew and understood their waiver to the Augmented Estate, such that it could be more easily enforced. If in the future spouses decide to restore each other’s rights to the “augmented estate” the Prenuptial Agreement can outline the steps necessary for such restoration of rights as well.

Drafting a Valid Prenup in Minnesota is Complicated

Minnesota has strict rules for drafting and enforcing Prenuptial Agreements. Minnesota requires fairness, equitability, and full disclosure of all finances. In addition to complete knowledge of all assets and debts, the parties must enter the agreement with full knowledge and understanding. Additionally, each party should have independent legal counsel.

At the Law Office of Tiffany Dust, we provide experienced, personalized guidance pertaining to Prenuptial Agreements in Minnesota.