Bill Text: IA SF369 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to marital agreements, and including effective date and applicability provisions. (Formerly SSB 1196.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2014-02-03 - Subcommittee, Baltimore, Alons, and Meyer. H.J. 144. [SF369 Detail]
Download: Iowa-2013-SF369-Introduced.html
Senate
File
369
-
Introduced
SENATE
FILE
369
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
SSB
1196)
(COMPANION
TO
LSB
1479HV
BY
COMMITTEE
ON
JUDICIARY)
A
BILL
FOR
An
Act
relating
to
marital
agreements,
and
including
effective
1
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
249A.3,
subsection
11,
paragraph
d,
Code
1
2013,
is
amended
to
read
as
follows:
2
d.
Unless
a
surviving
spouse
is
precluded
from
making
an
3
election
under
the
terms
of
a
premarital
marital
agreement
as
4
defined
in
section
596.1
,
the
failure
of
a
surviving
spouse
to
5
take
an
elective
share
pursuant
to
chapter
633,
division
V
,
6
constitutes
a
transfer
of
assets
for
the
purpose
of
determining
7
eligibility
for
medical
assistance
to
the
extent
that
the
value
8
received
by
taking
an
elective
share
would
have
exceeded
the
9
value
of
the
inheritance
received
under
the
will.
10
Sec.
2.
Section
596.1,
Code
2013,
is
amended
to
read
as
11
follows:
12
596.1
Definitions.
13
As
used
in
this
chapter
:
14
1.
“Marital
agreement”
means
any
of
the
following:
15
a.
A
premarital
agreement.
16
b.
An
amendment
to
a
premarital
agreement
made
between
17
present
spouses,
but
only
relating
to
post-death
matters.
18
c.
An
agreement
or
an
amendment
to
an
agreement
between
19
present
spouses,
but
only
relating
to
post-death
matters.
20
2.
“Party”
means
a
person
who
has
entered
into
a
marital
21
agreement.
22
3.
“Post-death
matter”
includes
but
is
not
limited
to
the
23
disposition
of
the
parties’
individually
or
jointly
owned
24
assets
upon
the
death
of
either
or
both
parties;
the
making
of
25
a
will,
trust,
or
other
arrangements
for
the
disposition
of
26
property
upon
the
death
of
either
or
both
parties;
ownership
27
rights
in
life
insurance
policies
and
retirement
plans
and
the
28
disposition
of
the
death
benefits
of
any
such
policy
or
plan;
29
and
the
limitation
or
expansion
of
spousal
elective
shares
30
pursuant
to
chapter
633,
division
V.
31
1.
4.
“Premarital
agreement”
means
an
agreement
between
32
prospective
spouses
made
in
contemplation
of
marriage
and
to
be
33
effective
upon
marriage.
34
2.
5.
“Property”
means
an
interest,
present
or
future,
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legal
or
equitable,
vested
or
contingent,
in
real
or
personal
1
property
,
including
income
and
earnings
.
2
Sec.
3.
Section
596.2,
Code
2013,
is
amended
to
read
as
3
follows:
4
596.2
Construction
and
application.
5
This
chapter
shall
be
construed
and
applied
to
effectuate
6
its
general
purpose
to
make
uniform
the
law
with
respect
to
7
premarital
agreements
.
8
Sec.
4.
Section
596.3,
Code
2013,
is
amended
to
read
as
9
follows:
10
596.3
Short
title.
11
This
chapter
may
be
cited
as
the
“Iowa
Uniform
Premarital
12
Marital
Agreement
Act”
.
13
Sec.
5.
Section
596.4,
Code
2013,
is
amended
to
read
as
14
follows:
15
596.4
Formalities.
16
1.
a.
A
premarital
marital
agreement
must
be
in
writing
17
and
,
must
be
signed
by
both
prospective
spouses.
It
parties,
18
and
must
contain
the
date
that
each
party
signed
the
marital
19
agreement.
Each
party’s
signature
must
be
witnessed
or
20
acknowledged
by
one
of
the
following
methods,
as
applicable:
21
(1)
Witnessed
by
a
competent
person,
as
described
in
section
22
633.280,
who,
in
the
presence
of
the
signing
party,
witnessed
23
the
signing
of
the
agreement
by
the
party
or
by
another
person
24
acting
on
behalf
of
the
party
at
that
party’s
direction.
25
(2)
Acknowledged
before
a
notarial
officer
within
this
26
state.
27
b.
The
witnessing
or
acknowledgment
language
may
be
in
28
substantially
the
following
form:
29
THIS
DOCUMENT
MUST
BE
EITHER
WITNESSED
OR
ACKNOWLEDGED
30
WITNESS
STATEMENT
31
I
declare
that
the
parties
who
signed
this
document
are
32
personally
known
to
me,
and
that
they
signed
this
marital
33
agreement
in
my
presence.
I
further
declare
that
I
am
at
least
34
sixteen
years
of
age
or
older.
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Witness
#1:
Signature:
_______________________________
1
Date:
_______________
2
Print
Name:
_____________________________________
3
Telephone:
________________
4
Address:
__________________________________________________
5
Witness
#2:
Signature:
_______________________________
6
Date:
_______________
7
Print
Name:
_____________________________________
8
Telephone:
________________
9
Address:
__________________________________________________
10
ACKNOWLEDGMENT
11
STATE
OF
IOWA,
____________
COUNTY,
ss:
12
On
this
____day
of
________________(month),
____(year),
the
13
said
____________________,
and
____________________,
known
to
14
me
(or
satisfactorily
proven)
to
be
the
parties
named
in
the
15
foregoing
instrument,
personally
appeared
before
me,
a
Notary
16
Public,
within
and
for
the
State
and
County
aforesaid,
and
17
acknowledged
that
they
freely
and
voluntarily
executed
the
same
18
for
the
purposes
stated
therein.
19
2.
A
marital
agreement
between
present
spouses
must
be
20
signed
by
both
parties
prior
to
the
filing
of
an
action
for
21
dissolution
of
marriage,
for
legal
separation,
or
for
separate
22
maintenance.
23
3.
A
marital
agreement
is
enforceable
without
consideration
24
other
than
the
marriage
.
25
4.
Both
parties
to
the
a
marital
agreement
shall
execute
all
26
documents
necessary
to
enforce
the
agreement.
27
Sec.
6.
Section
596.5,
Code
2013,
is
amended
to
read
as
28
follows:
29
596.5
Content.
30
1.
Parties
Subject
to
the
limitations
of
a
marital
agreement
31
between
present
spouses,
which
as
specified
in
section
596.1,
32
subsection
1,
shall
only
relate
to
post-death
matters,
parties
33
to
a
premarital
marital
agreement
may
contract
with
respect
to
34
the
following:
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a.
The
rights
and
obligations
of
each
of
the
parties
in
any
1
of
the
property
of
either
or
both
of
them
whenever
and
wherever
2
acquired
or
located.
3
b.
The
right
rights
of
possession,
ownership,
or
control,
4
including
but
not
limited
to
the
rights
to
buy,
sell,
use,
5
transfer,
make
a
gift
of,
exchange,
abandon,
lease,
consume,
6
expend,
assign,
create
a
security
interest
in,
mortgage,
7
encumber,
dispose
of,
or
otherwise
manage
and
control
property.
8
c.
The
disposition
of
property
upon
separation,
dissolution
9
of
the
marriage,
death,
or
the
occurrence
or
nonoccurrence
of
10
any
other
event.
11
d.
The
making
of
a
will,
trust,
or
other
arrangement
to
12
carry
out
the
provisions
of
the
marital
agreement.
13
e.
The
ownership
rights
in
and
disposition
of
the
death
14
benefit
from
a
life
insurance
policy
and
the
establishment
of
15
rights
of
beneficiaries
to
the
benefits
of
such
policy
.
16
f.
The
rights
and
obligations
in
benefits
available
or
to
be
17
available
under
an
employee
benefit
or
retirement
plan,
except
18
to
the
extent
federal
law
prevents
a
binding
agreement
with
19
respect
to
such
rights
and
obligations.
20
f.
g.
The
choice
of
law
governing
the
construction
of
the
21
agreement.
22
g.
h.
Any
other
matter,
including
the
personal
rights
and
23
obligations
of
the
parties,
not
in
violation
of
public
policy
24
or
a
statute
imposing
a
criminal
penalty.
25
2.
A
marital
agreement
is
not
enforceable
unless
the
26
agreement
contains
a
statement
of
the
types
of
rights
that
27
could
be
affected
by
the
marital
agreement
in
an
all
capital
28
letter
typeface
and
font
size
as
large
as
the
largest
typeface
29
and
font
contained
in
the
document.
The
following
statement
or
30
a
statement
of
like
import
contained
within
the
document
shall
31
be
acceptable
for
this
purpose:
32
BE
ADVISED,
BY
SIGNING
THIS
DOCUMENT,
YOU
MAY
BE
GIVING
33
UP
LEGAL
RIGHTS,
SUCH
AS
THE
RIGHTS
TO
OWN
OR
OCCUPY
YOUR
34
HOMESTEAD,
RIGHTS
TO
A
STATUTORY
SHARE
OF
YOUR
SPOUSE’S
ASSETS
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UPON
DEATH,
RIGHTS
TO
COURT
DETERMINATIONS
OF
DISTRIBUTIONS
OF
1
PROPERTY
UPON
DISSOLUTION
OF
MARRIAGE,
AND
OTHER
RIGHTS
YOU
2
MAY
HAVE
BY
REASON
OF
MARRIAGE.
YOU
MAY
ALSO
BE
EXPANDING
OR
3
RESTRICTING
THOSE
TYPES
OF
RIGHTS
OR
EXPANDING
OR
RESTRICTING
4
THE
COURT’S
POWERS
TO
DETERMINE
THESE
ISSUES.
5
2.
3.
The
right
of
a
spouse
or
child
to
support
,
whether
6
during
the
lifetime
or
after
the
death
of
a
party,
shall
not
be
7
adversely
affected
by
a
premarital
marital
agreement.
8
Sec.
7.
Section
596.6,
Code
2013,
is
amended
to
read
as
9
follows:
10
596.6
Effective
date
of
agreement.
11
1.
A
premarital
marital
agreement
becomes
effective
upon
12
the
marriage
,
if
signed
by
both
of
the
parties
prior
to
the
13
marriage
.
14
2.
If
a
marital
agreement
is
signed
by
the
parties
during
15
their
marriage,
the
marital
agreement
becomes
effective
on
the
16
effective
date
stated
in
the
marital
agreement.
If
no
such
17
effective
date
is
stated
in
the
marital
agreement,
the
marital
18
agreement
becomes
effective
upon
the
latest
date
of
signature
19
by
the
parties.
20
Sec.
8.
Section
596.7,
Code
2013,
is
amended
to
read
as
21
follows:
22
596.7
Revocation
and
amendment
.
23
1.
Revocation.
After
marriage,
a
premarital
marital
24
agreement
may
be
revoked
,
in
whole
or
in
part,
only
as
follows:
25
1.
a.
By
a
written
agreement
signed
by
both
spouses
26
parties
.
The
revocation
is
enforceable
without
consideration.
27
2.
b.
To
revoke
a
premarital
By
either
party
to
the
marital
28
agreement
without
the
consent
of
the
other
spouse
party
,
the
29
person
seeking
revocation
must
prove
one
or
more
if
the
party
30
seeking
revocation
proves
any
of
the
following:
31
a.
(1)
The
person
party
seeking
revocation
did
not
execute
32
the
marital
agreement
voluntarily.
33
b.
(2)
The
marital
agreement
was
unconscionable
when
it
34
was
executed.
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c.
(3)
Before
the
execution
of
the
marital
agreement
the
1
person
party
seeking
revocation
was
not
provided
a
fair
and
2
reasonable
disclosure
of
the
property
or
financial
obligations
3
of
the
other
spouse
party
;
and
the
person
party
seeking
4
revocation
did
not
have,
or
reasonably
could
not
have
had,
an
5
adequate
knowledge
of
the
property
or
financial
obligations
of
6
the
other
spouse
party;
and
such
disclosure
would
have
been
7
material
to
the
decision
of
the
party
seeking
revocation
to
8
execute
the
marital
agreement
.
9
(4)
Before
the
execution
of
the
marital
agreement
the
party
10
seeking
revocation
was
not
given
a
reasonable
opportunity
to
11
obtain
independent
legal
representation
with
respect
to
the
12
marital
agreement.
13
2.
Revocation
severable.
If
the
revocation
of
one
or
14
more
provisions
of
the
marital
agreement,
or
the
application
15
of
the
revocation
of
such
a
provision
to
a
party
is
upheld
16
by
the
court,
any
revoked
provision
shall
be
severed
from
17
the
remainder
of
the
marital
agreement,
unless
the
marital
18
agreement
states
otherwise,
and
shall
not
affect
the
remaining
19
provisions.
20
3.
Amendment.
A
marital
agreement
may
be
amended
by
21
a
written
agreement
signed
by
both
parties.
An
amendment
22
is
subject
to
the
limitations
of
an
amendment
to
a
marital
23
agreement
which,
as
specified
in
section
596.1,
subsection
1,
24
shall
only
relate
to
post-death
matters,
and
subject
to
the
25
enforcement
provisions
of
section
596.8.
26
4.
Limits
on
amendment
and
revocation.
A
marital
27
agreement
cannot
be
amended
or
revoked
by
an
agent,
guardian,
28
conservator,
or
other
legal
representative
of
either
party,
or
29
after
the
death
of
either
party,
except
as
provided
pursuant
30
to
subsection
1,
paragraph
“b”
,
relating
to
revocation
without
31
the
consent
of
the
other
party.
32
Sec.
9.
Section
596.8,
Code
2013,
is
amended
to
read
as
33
follows:
34
596.8
Enforcement.
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1.
A
premarital
marital
agreement
is
not
enforceable
if
the
1
person
or
party
against
whom
enforcement
is
sought
proves
any
2
of
the
following:
3
1.
The
person
did
not
execute
the
agreement
voluntarily.
4
2.
The
agreement
was
unconscionable
when
it
was
executed.
5
3.
Before
the
execution
of
the
agreement
the
person
was
6
not
provided
a
fair
and
reasonable
disclosure
of
the
property
7
or
financial
obligations
of
the
other
spouse;
and
the
person
8
did
not
have,
or
reasonably
could
not
have
had,
an
adequate
9
knowledge
of
the
property
or
financial
obligations
of
the
other
10
spouse
that
such
person
or
party
could
have
revoked
the
marital
11
agreement
pursuant
to
section
596.7,
subsection
1,
paragraph
12
“b”
,
relating
to
revocation
without
consent
of
the
other
party
.
13
2.
If
a
provision
one
or
more
of
the
provisions
of
the
14
marital
agreement
or
the
application
of
the
provision
to
a
15
party
is
found
determined
by
the
court
to
be
unenforceable
16
pursuant
to
this
section
,
the
unenforceable
provision
shall
be
17
severed
from
the
remainder
of
the
marital
agreement
,
unless
the
18
marital
agreement
states
otherwise,
and
shall
not
affect
the
19
remaining
provisions
,
or
application,
of
the
agreement
which
20
can
be
given
effect
without
the
unenforceable
provision
.
21
3.
Other
than
the
determination
of
the
issue
of
22
unconscionability,
actions
with
respect
to
enforcement
of
a
23
marital
agreement
shall
be
decided
by
the
court
as
a
matter
of
24
equity.
25
Sec.
10.
Section
596.9,
Code
2013,
is
amended
to
read
as
26
follows:
27
596.9
Unconscionability.
28
In
any
action
under
this
chapter
to
revoke
or
enforce
a
29
premarital
marital
agreement
,
the
issue
of
unconscionability
of
30
a
premarital
marital
agreement
shall
be
decided
by
the
court
31
as
a
matter
of
law.
32
Sec.
11.
Section
596.10,
Code
2013,
is
amended
to
read
as
33
follows:
34
596.10
Enforcement
——
void
marriage.
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If
a
marriage
is
determined
to
be
void,
an
agreement
that
1
would
otherwise
have
been
a
premarital
marital
agreement
2
is
enforceable
only
to
the
extent
necessary
to
avoid
an
3
inequitable
result.
4
Sec.
12.
Section
596.11,
Code
2013,
is
amended
to
read
as
5
follows:
6
596.11
Limitation
of
actions.
7
Any
statute
of
limitations
applicable
to
an
action
asserting
8
a
claim
for
relief
under
a
premarital
marital
agreement
is
9
tolled
during
the
marriage
of
the
parties
to
the
agreement
.
10
However,
equitable
defenses
limiting
the
time
for
enforcement,
11
including
laches
and
estoppel,
are
available
to
either
party.
12
Sec.
13.
NEW
SECTION
.
596.11A
Scope
of
chapter
——
bona
fide
13
purchasers
and
distribution
of
assets.
14
1.
This
chapter
shall
not
affect
adversely
the
rights
of
a
15
bona
fide
purchaser
for
value
to
the
extent
that
this
chapter
16
applies
to
a
transfer
or
conveyance
of
property
by
a
party
to
a
17
marital
agreement
to
a
nonparty.
18
2.
A
financial
institution,
insurance
company,
investment
19
company
as
defined
in
the
federal
Investment
Company
Act
of
20
1940,
15
U.S.C.
§
80a-3,
or
broker-dealer
registered
under
21
the
federal
Securities
Exchange
Act
of
1934,
15
U.S.C.
§
78m
22
et
seq.,
may
distribute
any
assets,
in
accordance
with
the
23
terms
of
the
contract
with
a
party
to
a
marital
agreement
or
in
24
accordance
with
any
effective
beneficiary
designation
without
25
liability
to
either
party
to
the
marital
agreement.
26
Sec.
14.
Section
596.12,
Code
2013,
is
amended
to
read
as
27
follows:
28
596.12
Effective
date
and
applicability
.
29
1.
This
As
it
relates
to
premarital
agreements,
this
chapter
30
takes
effect
on
January
1,
1992,
and
applies
to
any
premarital
31
agreement
executed
on
or
after
that
date
,
in
accordance
32
with
the
statutory
provisions
in
effect
as
of
the
date
of
33
the
premarital
agreement
.
This
chapter
does
not
affect
the
34
validity
under
Iowa
law
of
any
premarital
agreement
entered
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into
prior
to
January
1,
1992.
1
2.
As
it
relates
to
amendments
to
premarital
agreements
2
and
to
marital
agreements
and
amendments
to
marital
agreements
3
entered
into
after
marriage,
this
chapter
takes
effect
July
1,
4
2013,
and
applies
to
any
such
amendments
or
agreements
executed
5
on
or
after
that
date.
6
Sec.
15.
NEW
SECTION
.
598.20C
Marital
agreements.
7
Except
as
preempted
by
federal
law,
if
a
decree
of
8
dissolution,
annulment,
or
separate
maintenance
is
issued
after
9
a
marital
agreement
is
entered
into
in
accordance
with
chapter
10
596,
the
marital
agreement
is
voided
by
the
issuance
of
the
11
decree
unless
the
marital
agreement
is
retained
and
ratified
12
by
the
decree.
13
Sec.
16.
Section
598.21,
subsection
5,
paragraph
l,
Code
14
2013,
is
amended
to
read
as
follows:
15
l.
The
provisions
of
an
antenuptial
a
premarital
agreement.
16
Sec.
17.
Section
598.21A,
subsection
1,
paragraph
i,
Code
17
2013,
is
amended
to
read
as
follows:
18
i.
The
provisions
of
an
antenuptial
a
premarital
agreement.
19
Sec.
18.
Section
633.246A,
Code
2013,
is
amended
to
read
as
20
follows:
21
633.246A
Medical
assistance
eligibility.
22
Unless
precluded
from
doing
so
under
the
terms
of
a
23
premarital
marital
agreement
as
defined
in
section
596.1
,
the
24
failure
of
a
surviving
spouse
to
make
an
election
under
this
25
division
constitutes
a
transfer
of
assets
for
the
purpose
of
26
determining
eligibility
for
medical
assistance
pursuant
to
27
chapter
249A
to
the
extent
that
the
value
received
by
making
28
the
election
would
have
exceeded
the
value
of
property
received
29
absent
the
election.
30
EXPLANATION
31
This
bill
amends
Code
chapter
596
(premarital
agreements)
32
to
allow
for
marital
agreements
which
include
premarital
33
agreements,
certain
amendments
to
premarital
agreements,
and
34
the
creation
of
agreements
or
amendments
to
agreements
between
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present
spouses.
An
amendment
to
a
premarital
agreement
or
an
1
agreement
or
amendment
to
an
agreement
between
present
spouses
2
is
effective
only
to
the
extent
it
relates
to
post-death
3
matters.
The
bill
provides
for
protection
of
the
parties
4
including
that
the
agreement
must
not
be
unconscionable
at
the
5
time
it
is
entered
into;
the
agreement
must
include
a
provision
6
that
states
the
rights
a
party
may
be
giving
up;
an
agent
is
7
prohibited
from
amending
or
revoking
a
marital
agreement
on
8
behalf
of
a
party;
and
unconscionability
is
determined
by
the
9
court
as
a
matter
of
law
while
all
other
matters
are
determined
10
in
equity.
The
bill
provides
for
revocation
and
amendment
of
11
marital
agreements,
places
limits
on
amendments
and
revocations
12
of
marital
agreements,
provides
for
enforcement,
provides
13
for
scope
of
the
chapter
regarding
bona
fide
purchasers
and
14
distribution
of
assets,
and
makes
conforming
changes.
15
The
bill
continues
the
applicability
of
the
amended
Code
16
chapter
to
any
premarital
agreement
executed
on
or
after
17
January
1,
1992,
in
accordance
with
the
statutory
provisions
18
in
effect
as
of
the
date
of
the
premarital
agreement.
The
19
bill
does
not
modify
the
inapplicability
of
the
Code
chapter
20
to
any
premarital
agreement
entered
into
prior
to
January
21
1,
1992.
Additionally,
the
bill
provides
that
as
the
Code
22
chapter
relates
to
amendments
to
premarital
agreements
and
to
23
marital
agreements
entered
into
after
marriage,
the
amended
24
Code
chapter
takes
effect
July
1,
2013,
and
applies
to
any
such
25
amendments
or
agreements
executed
on
or
after
that
date.
26
The
bill
provides
that
except
as
preempted
by
federal
law,
if
27
a
decree
of
dissolution,
annulment,
or
separate
maintenance
is
28
issued
after
a
marital
agreement
is
entered
into,
the
marital
29
agreement
is
voided
by
the
issuance
of
the
decree
unless
the
30
marital
agreement
is
retained
and
ratified
by
the
decree.
31
The
bill
also
makes
conforming
changes
throughout
the
Code.
32
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