Legal Definitions - UPAA

UPAA stands for the Uniform Premarital Agreements Act.

The UPAA is a model law that provides a standardized framework for states to adopt when regulating premarital agreements. These agreements, often called "prenuptial agreements" or "prenups," are contracts entered into by prospective spouses before marriage. The UPAA aims to ensure that such agreements are fair, enforceable, and entered into voluntarily by both parties. It addresses key aspects like the requirement for the agreement to be in writing, full disclosure of assets and liabilities by both parties, and the absence of coercion or unconscionability at the time of signing.

Here are some examples of how the UPAA applies:

• Example 1: Protecting a Family Business
  Before marrying, Michael owns a successful landscaping business that has been in his family for generations. He wants to ensure that in the event of a divorce, the business remains entirely his separate property and is not subject to division. Michael and his fiancée, Sarah, decide to draft a premarital agreement.

  How it illustrates UPAA: The UPAA provides the legal guidelines for creating an enforceable agreement that clearly defines Michael's business as separate property. It would require Michael to fully disclose the business's value to Sarah and ensure Sarah has independent legal counsel and voluntarily agrees to the terms, making the agreement valid and binding under the UPAA's principles.

• Example 2: Waiving Spousal Support
  Dr. Anya, a high-earning physician, is planning to marry Ben, a freelance graphic designer. Both have established careers and wish to maintain financial independence. They agree that neither will seek spousal support (alimony) from the other if their marriage ends in divorce.

  How it illustrates UPAA: They can include a waiver of spousal support in their premarital agreement. The UPAA sets forth the conditions under which such a waiver is enforceable. For instance, it typically requires that the waiver does not leave one party in a position where they would become dependent on public assistance, and that both parties had full financial disclosure and legal representation when signing the agreement.

• Example 3: Protecting Inheritances for Children from Previous Marriages
  Eleanor, a widow with three adult children, is marrying Robert, who also has two adult children from a prior marriage. Both have significant assets they inherited from their previous spouses and wish to ensure that these assets, along with any future inheritances, pass directly to their respective children upon their death, rather than being commingled or claimed by the other spouse's heirs in a divorce.

  How it illustrates UPAA: Eleanor and Robert can utilize a premarital agreement, drafted according to the UPAA, to clearly delineate their separate property and establish how assets will be handled upon divorce or death. The UPAA's framework ensures that such an agreement, if properly executed with full disclosure and voluntary consent, will be legally binding, protecting their individual estates for their respective heirs.