Most people know that a prenuptial agreement (or prenup) protects assets during marriage and divorce. However, this legal contract also plays a crucial role after a person’s death. When someone passes away, their estate goes through probate – the court process of distributing their assets. A prenup can significantly change how this process works, making it essential for families to understand its impact before probate begins.
A prenup can affect property distribution
By clarifying the division of assets between spouses, a prenup may affect how the court distributes the assets during probate. This is because it can:
- Identify which assets are separate property: This clarifies what belongs to each spouse, making it clear what’s not subject to probate.
- Specify different arrangements for marital property: This guides the probate court on how to split shared assets, even if these rules are different from usual Tennessee laws governing marital property.
- Include special provisions: These rules can protect valuable or meaningful items like family businesses or heirlooms, making sure they go to chosen family members.
Keep in mind that courts carefully review prenups that limit spousal rights, and certain basic protections – such as elective shares – may still apply regardless of the agreement. Make sure to seek professional legal counsel how a prenup might affect your specific situation.
A prenup can potentially complicate the process
One of the biggest challenges in probate is making sure the prenup works with other estate plans. For example:
- A prenup might say something different from a newer will or trust
- Life insurance policies might list different people than the prenup
- Retirement accounts might not match what the prenup says
These conflicts can confuse the court and slow down the process of giving out assets. A clear, well-written prenup helps the court quickly decide who owns what and who gets what. But if a prenup is old or poorly written, it can cause delays while the court checks if it’s still valid or fixes conflicts with other documents.
Get the support you need
Sorting out conflicts between prenups and other estate documents during probate can be overwhelming. An attorney can review your situation and help you understand your options for moving forward smoothly.