S.F. 369 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, 35 -1- LSB 1479SV (2) 85 pf/rj 1/ 10

S.F. 369 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. 35 -2- LSB 1479SV (2) 85 pf/rj 2/ 10

S.F. 369 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: 35 -3- LSB 1479SV (2) 85 pf/rj 3/ 10

S.F. 369 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 35 -4- LSB 1479SV (2) 85 pf/rj 4/ 10

S.F. 369 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. 35 -5- LSB 1479SV (2) 85 pf/rj 5/ 10

S.F. 369 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. 35 -6- LSB 1479SV (2) 85 pf/rj 6/ 10

S.F. 369 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. 35 -7- LSB 1479SV (2) 85 pf/rj 7/ 10

S.F. 369 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 35 -8- LSB 1479SV (2) 85 pf/rj 8/ 10

S.F. 369 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 35 -9- LSB 1479SV (2) 85 pf/rj 9/ 10

S.F. 369 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 -10- LSB 1479SV (2) 85 pf/rj 10/ 10