Disaster Clause

When disbursements are promised via the terms of a prenuptial agreement, in the event of dissolution of marriage, it is prudent to also include a disaster clause that releases the promising party form his or her obligations in the event of a reversal of fortune.

Disaster Clause

A disaster clause typically terminates a party’s obligations should the promising party’s financial status substantially decrease between the time of execution of the prenuptial agreement to the time of petition for dissolution of marriage, not including property transfers made within one year of dissolution of marriage.