What Is a Sunset Clause in a Prenuptial Agreement

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A sunset clause can be used in any type of contract. In the contract itself, it determines a date on which the contract is no longer valid. If some type of sunset clause is included in a prenup, a language is used that states that the prenup is invalid after the couple has been married for a certain number of years. This was exactly the kind of clause included in Robert and Laurie`s marriage contract. A sunset clause can also have a language that terminates the agreement when a particular event occurs. Another type of sunset clause can be added that causes the prenup to expire over a period of time. An expiry clause indicates the agreed number of years during which the marriage contract will enter into force. For example, if a couple decides to set their sunset clause at 20 years, the agreed terms will no longer be enforceable after 20 years of marriage. Couples have the autonomy to decide when their prenup expires.

Any financial concerns or reservations that either party had prior to the marriage will hopefully be alleviated at the end of the expiration clause. The laws of the states applying the prenup conditions vary. There are very few cases in the country that deal with the issue of an expired prenup under a sunset clause. A case from Connecticut can be instructive. There, a couple signed a prenup that said that if the couple was still married on their seventh birthday, the prenup would expire. Four months before the birthday, the husband filed for divorce, but they were still married on the birthday. The husband argued that since he had filed for divorce before the birthday, the prenup should be applied. A difficult concept is that the prenup was assembled correctly and the appropriate language was used. This was a valid and enforceable legal agreement, and that is exactly why the prenup expired and its terms no longer applied.

As a general rule, married couples who have significant assets or own a lot of property will make an effort to get a marriage contract. It`s no secret in Los Angeles that some people don`t get married just because they`re in love. The fact is that prenuptial agreements are on the rise, especially among the millennial population (source: Business Insider). That said, you`ve probably heard of them more often in an informal conversation and you may have questions about who they are and what exactly they do. Luckily, you`ve come to the right place to learn a little more about the details of what makes a prenuptial agreement what it is, cultural judgments, and everything! Colloquially known as prenups, you`ve probably heard of the most extreme versions of these legal documents, which are often implemented by celebrities. However, as the age at which individuals marry tends to increase, we find that people have a desire to protect their assets and potentially protect themselves from the obligation to buy debt from their partner. While it`s important to reduce the variety of stigmas that exist around prenups, let HelloPrenup, the leading website for developing your prenup fully online, shed light on what you can and can`t achieve with a prenup, including adding a sunset clause. While you may include language that needs to be renegotiated at certain times or when certain milestones are reached, remember that you can renegotiate the terms of a contract at any time. This includes the ability to change all the terms of your prenup, the terms of your expiration clause, or both.

In California, couples have the freedom to determine how many years their expiration clause will be, assuming that if they were married during the agreed period, the terms of their prenuptial agreement will no longer apply. Traditional sunset clauses allow the marriage contract to expire after a predetermined number of years. The fact is that not everyone needs a marriage contract. If you`re both relatively young and you`re in pretty much the same place in your life — just at the beginning and before you`ve accumulated a lot of wealth — a prenup may not be necessary. Robert Peterson and Laurie Sykes fell in love and decided to get married. Three days before their wedding, Robert suggested they sign a prenuptial contract and Laurie agreed. In the context of that agreement, they contained a sunset clause which provided for a precise date on which the prenup would expire. In the specific wording, it says: “This agreement will become null and void on the seventh (7th) anniversary of the marriage of the parties and without further force and effect.” Some expiration clauses end immediately when the specified dates arrive, while others expire over time when the milestone years of the marriage are reached.

Over time, more of the prenup is invalidated and more property is considered divided in the event of divorce. This can help protect the wealthier part of a quick divorce, while also providing protection to the less wealthy partner once the marriage has lasted several years. .