The Great Debate Over Tennessee Prenuptial Agreements

The “Great Debate” over whether prenuptial agreements are a good idea for most Tennessee couples has taken on new steam. (Or maybe it’s the family law attorneys who are steamed up about a New York divorce court that recently invalidated a prenup on behalf of the wife).

Invalidating the Prenup in Petrakis v. Petrakis

Tennessee Prenuptial Agreement Law

Long Island resident Elizabeth Cioffi-Petrakis signed a prenuptial agreement four days before she exchanged vows with her millionaire man, Peter Petrakis. Petrakis v. Petrakis (2013 NY Slip Op 01057, Feb. 20, 2013).

Invitations out, R.S.V.P.s in, flowers ordered, gifts arriving, church ready, reception venue set, catering paid for, honeymoon cruise booked. There is a lot of pressure to have the happy event go off without a hitch. That’s the pressure many soon-to-be-newlyweds are under when presented with an ultimatum: either sign the antenuptial agreement or cancel the wedding.

For those unfamiliar with premarital agreements, with few exceptions they must be signed before any wedding takes place. The nearer the big day, the more determined the propertied individual can be to get the prenup signed by the other party. The pressure on the less-propertied spouse to sign the prenup “or else” can be very intense because the consequences of not signing are likely to include a swift silencing of the wedding bells.

In an otherwise ordinary divorce, Cioffi-Petrakis challenged the validity of the prenuptial agreement claiming she was coerced into executing it. There was an unusual verbal promise that she relied upon in signing away rights to significant assets; knowing she would rely on his word, her then fiancé promised that he would shred the prenup when they had children.

Three kids later and a break-down of the marriage, the prenup was still intact. And the terms were not all that fair to the children’s mother. For starters, Dad would keep $20 million in real estate assets. Mom would receive $25,000 for every year they were married. This was not an agreement that passed the smell test, so to speak.

The judge agreed that Cioffi-Petrakis was “fraudulently induced” into signing the antenuptial agreement presented by her husband shortly before the wedding and held it void. Following the judge’s ruling in the landmark case, affirmed on appeal, the Petrakis’ divorce continues sans prenup.

Family Lawyers Consider the Role of Prenuptial Agreements After Petrakis

After news of the unprecedented decision in the Petrakis case, the New York Times offered a debate up to its readers in The Power of the Prenup. Here are some of the highlights:

● Kathleen Miller, a certified financial planner, suggests a prenuptial agreement “for those who have sizeable wealth, own a business or are entering into a second marriage with significant personal assets”;

● Thomas Handler, Esq., says a prenup is no guarantee of asset protection, so “[i]f you want to protect your premarital assets, then you should safeguard them within jurisdictions that have formidable asset protection laws”;

● Laurie Isreal, Esq., sees the premarital agreement as a “very bad thing” in first-time marriages because “[i]t promotes distrust and feelings that the beloved is callous and unloving”;

● Erik Newton, Esq., points out that every state has a default prenup in its marriage and divorce laws. The decision is “not whether you should have a prenup, but whether you want your state’s default version of one”;

● Celeste Watkins-Hayes, sociologist, makes the point that “all women need a financial safety net,” not just the wealthy who can protect their assets with a prenup;

● W. Bradford Wilcox, sociologist, suggests that in lieu of an antenuptial agreement, there really is a much “easier way to keep your assets and income separate: it’s called cohabitation.”

Tennessee Law on Prenuptial Agreements

Tennessee prenuptial agreements document a couple’s agreement in advance of marriage, the purpose is to protect each of them in the event of a divorce. For more information about Tennessee prenups, take a moment to watch this Fox news interview with attorney Miles Mason, Sr.:

Tennessee Prenuptial Agreement Pros and Cons in Family & Divorce Law