Prenuptial and postnuptial agreements are common for couples that have been previously married, particularly if either or both have children from their prior relationships. Some agreements are intended to protect specific assets from the claims of the other party in the event of a divorce and/or death. Other agreements are broader and provide that each party shall continue to own their own property and waive all of their rights to the other’s property.
In the recent Tennessee Court of Appeals case of Rickman v. Rickman, M2013-00251-COA-R3-CV, October 15, 2103, the appellate court affirmed the trial court’s ruling that a widow waived her right to collect from the wrongful death settlement proceeds of her husband. Although there was no specific language in the postnuptial agreement as to this type of potential claim, it did provide that the parties waived “all other rights which they may have acquired by reason of their marriage.” The court stated that it was “unable to unequivocally conclude that wrongful death proceeds were not contemplated” by the parties. The court also relied on the fact that under Tennessee law, the proceeds from a wrongful death action were not required to be distributed in a certain manner, but should pass as if there is no will. Ultimately, the court ruled that the widow’s only claim was by reason of her marriage to the decedent which she waived by signing the agreement.
Prenuptial and postnuptial agreements are important tools in marital and estate planning. However, as with every contract, it is important that you know exactly what you are getting (and what you are not) when you sign the dotted line.
