SF 1005

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to married persons; adopting the Uniform 
  1.3             Premarital Agreement Act; making technical changes; 
  1.4             amending Minnesota Statutes 1998, section 519.11; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 519. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 519.11, is 
  1.9   amended to read: 
  1.10     519.11 [ANTENUPTIAL AND POSTNUPTIAL CONTRACTS.] 
  1.11     Subdivision 1.  [ANTENUPTIAL CONTRACT.] A man and woman of 
  1.12  legal age may enter into an antenuptial contract or settlement 
  1.13  prior to solemnization of marriage which shall be valid and 
  1.14  enforceable if (a) there is a full and fair disclosure of the 
  1.15  earnings and property of each party, and (b) the parties have 
  1.16  had an opportunity to consult with legal counsel of their own 
  1.17  choice.  An antenuptial contract or settlement made in 
  1.18  conformity with this section may determine what rights each 
  1.19  party has in the nonmarital property, defined in section 518.54, 
  1.20  subdivision 5, clauses (a) to (d), upon dissolution of marriage, 
  1.21  legal separation or after its termination by death and may bar 
  1.22  each other of all rights in the respective estates not so 
  1.23  secured to them by their agreement.  This section shall not be 
  1.24  construed to make invalid or unenforceable any antenuptial 
  1.25  agreement or settlement made and executed in conformity with 
  1.26  this section because the agreement or settlement covers or 
  2.1   includes marital property, if the agreement or settlement would 
  2.2   be valid and enforceable without regard to this 
  2.3   section. Antenuptial or premarital contracts, agreements, or 
  2.4   settlements entered into after the effective date of sections 
  2.5   519.12 to 519.21 must comply with those sections. 
  2.6      Subd. 1a.  [POSTNUPTIAL CONTRACT.] (a) Spouses who are 
  2.7   legally married under the laws of this state may enter into a 
  2.8   postnuptial contract or settlement which is valid and 
  2.9   enforceable if it: 
  2.10     (1) complies with the requirements for antenuptial 
  2.11  contracts or settlements in this section and in the law of this 
  2.12  state, including, but not limited to, the requirement that it be 
  2.13  procedurally and substantively fair and equitable both at the 
  2.14  time of its execution and at the time of its enforcement; and 
  2.15     (2) complies with the requirements for postnuptial 
  2.16  contracts or settlements in this section. 
  2.17     (b) A postnuptial contract or settlement that conforms with 
  2.18  this section may determine all matters that may be determined by 
  2.19  an antenuptial contract or settlement a premarital agreement 
  2.20  under the law of this state sections 519.12 to 519.21, except 
  2.21  that a postnuptial contract or settlement may not determine the 
  2.22  rights of any child of the spouses to child support from either 
  2.23  spouse or rights of child custody or visitation. 
  2.24     (c) A postnuptial contract or settlement is valid and 
  2.25  enforceable only if at the time of its execution each spouse is 
  2.26  represented by separate legal counsel. 
  2.27     (d) A postnuptial contract or settlement is valid and 
  2.28  enforceable only if at the time of its execution each of the 
  2.29  spouses entering into the contract or settlement has marital 
  2.30  property titled in that spouse's name, nonmarital property, or a 
  2.31  combination of marital property titled in that spouse's name and 
  2.32  nonmarital property with a total net value exceeding $1,200,000. 
  2.33     (e) A postnuptial contract or settlement is not valid or 
  2.34  enforceable if either party commences an action for a legal 
  2.35  separation or dissolution within two years of the date of its 
  2.36  execution. 
  3.1      (f) Nothing in this section shall impair the validity or 
  3.2   enforceability of a contract, agreement, or waiver which is 
  3.3   entered into after marriage and which is described in chapter 
  3.4   524, article 2, part 2, further, a conveyance permitted by 
  3.5   section 500.19 is not a postnuptial contract or settlement under 
  3.6   this section. 
  3.7      Subd. 2.  [WRITING; EXECUTION.] Antenuptial or Postnuptial 
  3.8   contracts or settlements shall be in writing, executed in the 
  3.9   presence of two witnesses and acknowledged by the parties, 
  3.10  executing the same before any officer or person authorized to 
  3.11  administer an oath under the laws of this state.  An antenuptial 
  3.12  contract must be entered into and executed prior to the day of 
  3.13  solemnization of marriage.  A power of attorney may not be used 
  3.14  to accomplish the purposes of this section. 
  3.15     Subd. 2a.  [AMENDMENT OR REVOCATION.] An antenuptial 
  3.16  contract or settlement may be amended or revoked after the 
  3.17  marriage of the parties only by a valid postnuptial contract or 
  3.18  settlement which complies with this section and with the laws of 
  3.19  this state.  A postnuptial contract or settlement may be amended 
  3.20  or revoked only by a later, valid postnuptial contract or 
  3.21  settlement which complies with this section and with the laws of 
  3.22  this state. 
  3.23     Subd. 3.  [FILING; RECORDING.] An antenuptial or A 
  3.24  premarital agreement made under sections 519.12 to 519.21 or a 
  3.25  postnuptial contract or settlement which by its terms conveys or 
  3.26  determines what rights each has in the other's real property and 
  3.27  sets forth the legal description of the real estate granted or 
  3.28  affected by the agreement may be filed or recorded in every 
  3.29  county where any real estate so described is situated, in the 
  3.30  office of the county recorder for the county or in any public 
  3.31  office authorized to receive a deed, assignment or other 
  3.32  instrument affecting the real estate, for filing or recording.  
  3.33     Subd. 4.  [EFFECT OF RECORDING.] Any antenuptial or A 
  3.34  premarital agreement made under sections 519.12 to 519.21 or a 
  3.35  postnuptial contract or settlement not recorded in the office of 
  3.36  the county recorder or other public office authorized to receive 
  4.1   the document, where the real property is located, shall be void 
  4.2   as against any subsequent purchaser in good faith and for a 
  4.3   valuable consideration of the same real property, or any part 
  4.4   thereof, whose conveyance is first duly recorded, and as against 
  4.5   any attachment levied thereon or any judgment lawfully obtained 
  4.6   at the suit of any party against the person in whose name the 
  4.7   title to the property appears of record prior to recording of 
  4.8   the conveyance.  
  4.9      Subd. 5.  [EVIDENCE; BURDEN OF PROOF.] An antenuptial or A 
  4.10  premarital agreement made under sections 519.12 to 519.21 or a 
  4.11  postnuptial contract or settlement duly acknowledged and 
  4.12  attested shall be prima facie proof of the matters acknowledged 
  4.13  therein and as to those matters, the burden of proof shall be 
  4.14  and rest upon the person contesting the same.  
  4.15     Subd. 6.  [EFFECTIVE DATE.] This section shall apply to all 
  4.16  antenuptial contracts and settlements executed on or after 
  4.17  August 1, 1979, and shall apply to all postnuptial contracts and 
  4.18  settlements executed on or after August 1, 1994.  
  4.19     Subd. 7.  [EFFECT OF SECTIONS 519.01 TO 519.101.] Nothing 
  4.20  in sections 519.01 to 519.101, shall be construed to 
  4.21  affect antenuptial or premarital agreements made under sections 
  4.22  519.12 to 519.21 or postnuptial contracts or settlements. 
  4.23     Sec. 2.  [519.12] [DEFINITIONS.] 
  4.24     Subdivision 1.  [SCOPE.] The definitions in this section 
  4.25  apply to sections 519.12 to 519.21. 
  4.26     Subd. 2.  [PREMARITAL AGREEMENT.] "Premarital agreement" 
  4.27  means an agreement between prospective spouses made in 
  4.28  contemplation of marriage and to be effective upon marriage. 
  4.29     Subd. 3.  [PROPERTY.] "Property" means an interest, present 
  4.30  or future, legal or equitable, vested or contingent, in real or 
  4.31  personal property, including income and earnings. 
  4.32     Sec. 3.  [519.13] [FORMALITIES.] 
  4.33     A premarital agreement must be in writing and signed by 
  4.34  both parties.  It is enforceable without consideration. 
  4.35     Sec. 4.  [519.14] [CONTENT.] 
  4.36     (a) Parties to a premarital agreement may contract with 
  5.1   respect to: 
  5.2      (1) the rights and obligations of each of the parties in 
  5.3   any of the property of either or both of them whenever and 
  5.4   wherever acquired or located; 
  5.5      (2) the right to buy, sell, use, transfer, exchange, 
  5.6   abandon, lease, consume, expend, assign, create a security 
  5.7   interest in, mortgage, encumber, dispose of, or otherwise manage 
  5.8   and control property; 
  5.9      (3) the disposition of property upon separation, marital 
  5.10  dissolution, death, or the occurrence or nonoccurrence of any 
  5.11  other event; 
  5.12     (4) the modification or elimination of spousal support; 
  5.13     (5) the making of a will, trust, or other arrangement to 
  5.14  carry out the provisions of the agreement; 
  5.15     (6) the ownership rights in and disposition of the death 
  5.16  benefit from a life insurance policy; 
  5.17     (7) the choice of law governing the construction of the 
  5.18  agreement; and 
  5.19     (8) any other matter, including their personal rights and 
  5.20  obligations, not in violation of public policy or a statute 
  5.21  imposing a criminal penalty. 
  5.22     (b) The right of a child to support may not be adversely 
  5.23  affected by a premarital agreement. 
  5.24     Sec. 5.  [519.15] [EFFECT OF MARRIAGE.] 
  5.25     A premarital agreement becomes effective upon marriage of 
  5.26  the parties. 
  5.27     Sec. 6.  [519.16] [AMENDMENT, REVOCATION.] 
  5.28     After marriage, a premarital agreement may be amended or 
  5.29  revoked only by a written agreement signed by the parties in 
  5.30  compliance with section 519.11.  The amended agreement or the 
  5.31  revocation is enforceable without consideration. 
  5.32     Sec. 7.  [519.17] [ENFORCEMENT.] 
  5.33     (a) A premarital agreement is not enforceable if the party 
  5.34  against whom enforcement is sought proves that: 
  5.35     (1) that party did not execute the agreement voluntarily; 
  5.36  or 
  6.1      (2) the agreement was unconscionable when it was executed 
  6.2   and, before execution of the agreement, that party: 
  6.3      (i) was not provided a fair and reasonable disclosure of 
  6.4   the property or financial obligations of the other party; 
  6.5      (ii) did not voluntarily and expressly waive, in writing, 
  6.6   any right to disclosure of the property or financial obligations 
  6.7   of the other party beyond the disclosure provided; and 
  6.8      (iii) did not have, or reasonably could not have had, an 
  6.9   adequate knowledge of the property or financial obligations of 
  6.10  the other party. 
  6.11     (b) If a provision of a premarital agreement modifies or 
  6.12  eliminates spousal support and that modification or elimination 
  6.13  causes one party to the agreement to be eligible for support 
  6.14  under a program of public assistance at the time of separation 
  6.15  or marital dissolution, a court, notwithstanding the terms of 
  6.16  the agreement, may require the other party to provide support to 
  6.17  the extent necessary to avoid that eligibility. 
  6.18     (c) An issue of unconscionability of a premarital agreement 
  6.19  shall be decided by the court as a matter of law. 
  6.20     Sec. 8.  [519.18] [ENFORCEMENT:  VOID MARRIAGE.] 
  6.21     If a marriage is determined to be void, an agreement that 
  6.22  would otherwise have been a premarital agreement is enforceable 
  6.23  only to the extent necessary to avoid an inequitable result. 
  6.24     Sec. 9.  [519.19] [LIMITATION OF ACTIONS.] 
  6.25     Any statute of limitations applicable to an action 
  6.26  asserting a claim for relief under a premarital agreement is 
  6.27  tolled during the marriage of the parties to the agreement.  
  6.28  However, equitable defenses limiting the time for enforcement, 
  6.29  including laches and estoppel, are available to either party. 
  6.30     Sec. 10.  [519.20] [APPLICATION AND CONSTRUCTION.] 
  6.31     Sections 519.12 to 519.21 shall be applied and construed to 
  6.32  effectuate its general purpose to make uniform the law with 
  6.33  respect to the subject of this act among states enacting it. 
  6.34     Sec. 11.  [519.21] [SHORT TITLE.] 
  6.35     Sections 519.12 to 519.21 may be cited as the Uniform 
  6.36  Premarital Agreement Act.