Prenuptial Agreements in Indiana: What You Need to Know Before You Say “I Do”

A prenuptial agreement allows couples to make important financial decisions before marriage rather than leaving those decisions to a court if the marriage ends. In Indiana, prenuptial agreements, known formally as premarital agreements are governed by Indiana Uniform Premarital Agreement Act (IUPAA). Here is how prenuptial agreements work in Indiana.

What Is a Prenuptial Agreement?

A prenuptial agreement, sometimes called a premarital agreement, is a written contract entered into by two people before they get married. The agreement typically addresses how property, debts, and other financial matters will be handled during the marriage and in the event of divorce or death. While the idea of planning for divorce before a wedding may seem uncomfortable, a prenuptial agreement is a practical legal tool allowing both parties to define their financial expectations and protect their individual interests. Additionally, the discomfort of discussing these issues before a marriage is often much less than the discomfort of fighting about them during a divorce.

What a Prenuptial Agreement Can Address

Under Indiana law, a prenuptial agreement may address a wide range of financial matters, including but not limited to: identifying which assets and debts each person brings into the marriage and how those will be treated, establishing how property acquired during the marriage will be divided if the marriage ends, determining whether either spouse will be entitled to spousal maintenance and under what conditions, and addressing rights to life insurance proceeds, retirement accounts, and other financial benefits. A prenuptial agreement may also address the management of a business that one spouse owns, the protection of an inheritance that one spouse expects to receive, and the disposition of property upon death.

What a Prenuptial Agreement Cannot Do

There are limits to what a prenuptial agreement can address. In Indiana, a prenuptial agreement cannot determine child custody, parenting time, or child support. These issues are always decided based on the best interests of the child at the time such issues arise, whether at the time of the divorce or later at a modification hearing, and the court retains authority to make those determinations regardless of what a prenuptial agreement says. A prenuptial agreement also cannot include terms that are unconscionable, meaning so one-sided that they would be fundamentally unfair to one party, or that promote or encourage divorce or separation.

Enforceability

For a prenuptial agreement to be enforceable in Indiana, the agreement must be in writing and signed by both parties. It must be entered into voluntarily, meaning neither party was improperly pressured or coerced into signing. A court may decline to enforce the prenuptial agreement if the party opposing enforcement proves either: (1) that the agreement was not executed voluntarily; or (2) that the agreement was unconscionable when it was signed. A court may also impose an obligation for spousal support, even if the agreement includes language that no spousal support will be awarded, if necessary to prevent extreme hardship.

The family law attorneys at McNeelyLaw can help you draft or review a prenuptial agreement that protects your interests. Contact us today by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.