A sunset clause is one that specifies a date or trigger event in which certain terms in the prenuptial agreement would expire. A common trigger event in a prenup’s sunset clause would be a specific anniversary, such as the couple’s 10th wedding anniversary. The prenup can also be constructed in a way that specific terms of the agreement are “phased out” over time. The general idea is that as the marriage moves forward, the initial motivations behind inclusion of these specified terms may no longer apply. What works for a marriage of short duration may not seem fair for a marriage of long duration. Examples are waivers of spousal estate election rights and waivers of maintenance (spousal support) – especially in situations where a significant imbalance exists in the parties’ assets and finances. Absent a significant difference in assets, the parties may still choose a sunset clause for their own reasons – such as the couple’s established commitment to the partnership.
It is important to understand the implications that a sunset clause may have, as well as ensuring it properly reflects you and your partner’s goals. An experienced attorney is able to explore the various options in trying to meet each partner’s objectives and ensure that agreed upon terms are reflected correctly in the prenup. A prenup is a binding contract that establishes the foundation for a marriage. From the outset, negotiations for a prenup need to focus on how each term impacts each partner and whether the terms continue to be fair and reasonable over the course of a long marriage.