Prenuptial Agreements in North Carolina

Prenuptial agreements or prenups are a legal document entered into by two people when contemplating marriage concerning the rules that relate to the disposition of property and debts. It is true that prenups are often understood as protecting the separate property from dispersion upon the divorcing of the spouses, though they have internal coherence and security within the marriage as well. Every state has its law regarding the entry of prenuptial contracts, and North Carolina is no exception to this rule. As for NCS, the Uniform Premarital Agreement Act (UPAA), provides for the legally enforceability of prenups, however, there are several peculiarities and nuances that couples should know about before entering the said agreement.

Must Be in Writing and Signed by Both Parties

One of the most fundamental requirements for a prenuptial agreement in North Carolina is that it has to be in writing. Oral contracts are unenforceable, as fair and gracious as they might be. Such an agreement must, however, be signed by the two parties concerned with the union, and this must happen before the marriage contract. After the wedding, no bride or groom is supposed to sign a prenup; thus, the signing of such a contract must be done before the actual celebration of the marriage.

Free of Duress

The North Carolina courts have given a lot of emphasis to the voluntary nature of prenuptial agreements. What should be stressed is that both parties have to enter the agreement with the dignity of the marriage and without any external influence. If one of the parties demonstrates how they were compelled to sign the prenup, say, by the other party or family members, then such agreement can be declared null and void. This is why it is essential for each party to have ample time to review and understand the document before signing it. Presumably, the agreement should be discussed and executed a lot earlier than the wedding day.

Complete and Truthful Disclosure of Property Owned and Any Related Congruencies

In North Carolina, there should be no secrets between the parties, and each must divulge completely and honestly all the assets, liabilities, debts and any other types of financial consideration before entering into the prenuptial agreement. Such disclosures are important to make sure that both of the parties know what they are getting into with the other party’s financial status. Where all the information is not provided, such a provision would lead to the court declaring the agreement as conscionable and unenforceable. It is however compensatory that in some instances one party may agree in writing and in certain circumstances not ask for full disclosure of all the material facts.

Limitations on Child Support Provisions

An interesting limitation to North Carolina prenuptial agreements includes that they do not have any provisions that limit or waive child support. In this regard, the courts in North Carolina uphold the principles of the child’s best interests, and any such agreements in a prenup to determine child support amounts, will not be accepted. If spouses have kids or are planning to have children, they can not use a prenup to establish their financial responsibilities for those children. There will be a recalculation of the amount of money a parent will pay for his or her child depending on the requirements of the child at the time of divorce as opposed to what was agreed on before.

Alimony provisions and the discretion of the court

There are prenuptial agreements, which can also be made in North Carolina with a spousal support or alimony provision, but North Carolina law allows courts to create provisions that are unconscionable to the reasonable person. For instance, even if there is a clause waiver which states that there will be no payment of alimony, a situation whereby one party out of the two will suffer poverty due to lack of the base needs as a consequence of waiving alimony may yet trigger the country to revive or rescind the alimony provision. This is especially true if the financial situation of either of the parties has drastically altered since the prenup agreement was signed. There seems to be a certain appetite for justice at the time of enforcement by these North Carolina courts, and indeed, such courts have jurisdiction to avoid compromising the feelings of either party especially, after potential dilemmas have transformed into high chances of disenfranchisement of either party.

Timing Matters

As much as the North Carolina law does not have any absolute requirement on the time frame within which the prenuptial agreement must be entered into, it would be more suitable if the prenuptial agreement is not signed too close to the wedding date since that may lead to grounds for coercion. It will create room for circumstances where one party signs the agreement without fully digesting the contents of the document. This can be avoided if parties initiate conversations and work on the prenuptial agreement at least some months before the marriage. Allowing reasonable time for both parties to understand the contents of the agreement and the conditions that they are adopting can avoid many potential problems that could arise.

Unconscionability and Court Review:

However the agreement is written and even if it’s voluntarily signed and contains all material facts regarding the property of the parties, the prenup may still be overturned by the courts in North Carolina on the ground of unconscionability. Unconscionability means practicing agreements that are grossly or excessively one sided and therefore enforcement would be unreasonable. In a situation where there is great inequality in the distribution of property among the parties to the agreement, the court can ameliorate the ineffectuality of the agreement.

Conclusion

Prenuptial agreements can be very effective instruments in the hands of the couple, who intend on protecting their financial needs and rights well in advance to the marriage. However, like most states, North Carolina has particular stipulations that couples have to adhere to, to ensure that their prenup is legal and is likely to be upheld by law if enforced. In North Carolina, there are several items that one must take into consideration while drafting a prenuptial agreement including full financial disclosures, limitation on child support provision clauses and that the agreement could be subjected to court review for unconscionable agreements. With this distinctive limitation in mind and the assistance of a competent lawyer, couples can be able to draft premarital agreements that are just, open and specific to the concerns of the parties involved in the agreement.

This guide underscores to couples how important it is to plan well and communicate effectively before signing a prenuptial agreement in North Carolina, thus enabling couples to create a sound bedrock with hopes of staying together in the long run.