Prenuptial Agreements in North Dakota
A prenuptial agreement, also known as a premarital agreement, is a legal contract entered into by a couple before they get married or enter into a civil partnership. This agreement sets out how their assets, debts, and other financial matters will be divided between them if their marriage ends in divorce or dissolution. In North Dakota, the rules and regulations governing prenuptial agreements are outlined in the North Dakota Century Code (NDCC) Chapter 14-03.2.
Formation and Effectiveness of Prenuptial Agreements
According to NDCC 14-03.2-05, a prenuptial agreement must be in a record and signed by both parties. The agreement is enforceable without consideration, meaning that there doesn’t need to be an exchange of value (such as money or property) for the agreement to be valid.
The prenuptial agreement becomes effective upon marriage as per NDCC 14-03.2-06. If the marriage is determined to be void, the prenuptial agreement is still enforceable to the extent necessary to avoid an inequitable result (NDCC 14-03.2-07).
Enforcement of Prenuptial Agreements
The enforcement of a prenuptial agreement in North Dakota is governed by NDCC 14-03.2-08. The agreement is unenforceable if a party against whom enforcement is sought proves that their consent to the agreement was involuntary or the result of duress, or that they did not have access to independent legal representation.
Furthermore, if the agreement modifies or eliminates spousal support and causes a party to be eligible for public assistance at the time of separation or marital dissolution, a court may require the other party to provide support to the extent necessary to avoid that eligibility.
A court may also refuse to enforce a term of a prenuptial agreement if it was unconscionable at the time of signing, or if its enforcement would result in substantial hardship for a party due to a material change in circumstances after the agreement was signed.
Scope of Prenuptial Agreements
As per NDCC 14-03.2-02, the rules and regulations outlined in this chapter apply to prenuptial agreements signed after July 31, 2013. This chapter does not affect any right, obligation, or liability arising under a prenuptial agreement signed before August 1, 2013.
The chapter does not apply to agreements between spouses which affirm, modify, or waive a marital right or obligation and require court approval to become effective, or to agreements between spouses who intend to obtain a marital dissolution or court-decreed separation which resolves their marital rights or obligations and is signed when a proceeding for marital dissolution or court-decreed separation is commenced.
Financial Disclosure in Prenuptial Agreements
A party has adequate financial disclosure under a prenuptial agreement if they receive a reasonably accurate description and good-faith estimate of the value of the property, liabilities, and income of the other party; expressly waive, in a separate signed record, the right to financial disclosure beyond the disclosure provided; or have adequate knowledge or a reasonable basis for having adequate knowledge of the information described.
In conclusion, a prenuptial agreement in North Dakota is a legally binding contract that can significantly impact the financial and legal rights of both parties in the event of a divorce. Therefore, it is highly recommended that each party seek independent legal advice before entering into such an agreement.