Should I Sign a Prenuptial Agreement?
A prenuptial agreement outlines the distribution of assets, liabilities, and other financial matters in the event of divorce, separation, or death. While prenups are common, the decision to sign one with the help of a family law attorney is deeply personal and influenced by several legal, financial, and emotional factors.
If you and your partner are considering signing a prenuptial agreement, Kathleen M. Kirchner, Attorney at Law is there for you. Attorney Kirchner provides legal assistance for clients throughout Anne Arundel County, Maryland. Here's what you need to know about prenups, so you can feel confident when the time comes to sign yours.
What Is a Prenuptial Agreement?
A prenuptial agreement is a written contract between two people planning to marry. The agreement can cover various matters, including the division of assets, liabilities, spousal support, and other financial matters in the event of divorce, separation, or death.
Typically, a prenuptial agreement is used to:
Define asset ownership: Clarify which assets will remain separate property and which will become marital property.
Address spousal support (alimony): Outline whether or not one spouse will be entitled to financial support in case of divorce.
Protect family inheritance: Protect family assets or inheritances that one spouse may want to keep separate.
Debt allocation: Assign responsibility for debts accumulated before or during the marriage.
There are several reasons why couples may choose to enter into a prenuptial agreement.
Why Do People Get a Prenuptial Agreement?
Some of the primary reasons why you may decide to sign a prenup with your partner include:
Asset protection: For individuals with significant assets before marriage, a prenuptial agreement can help make sure that these assets are protected in case of divorce. This is particularly important for business owners, professionals, or those with substantial wealth.
Debt protection: If one partner has significant debt, a prenuptial agreement can protect the other spouse from being responsible for these liabilities.
Clarity and peace of mind: A prenup can provide clarity about financial expectations, reducing potential conflicts or misunderstandings in the future. It can offer peace of mind for both parties about what will happen in the event of a divorce.
Second marriages: Individuals entering a second marriage may have children from previous relationships and may want to protect their inheritance for their children, which can be outlined in a prenuptial agreement.
Business ownership: If one partner owns a business, the other spouse may want to make sure that the business remains separate property in the event of a divorce.
Different financial Positions: If there's a significant difference in the financial positions or earning capacities of the two spouses, a prenup can help make sure that the wealthier spouse doesn't end up paying an excessive amount in alimony or division of assets.
Maryland is one of the few states that allows for prenuptial agreements and enforces them under most circumstances.
Legal Considerations in Maryland
Before you move forward with your document, there are some specific legal guidelines and requirements to consider. Some things to keep in mind include:
Voluntary agreement: A prenuptial agreement in Maryland must be entered into voluntarily by both parties. If one party is coerced or forced into signing the agreement, it may not be enforceable in court.
Full disclosure: Both parties must fully disclose their assets and liabilities. If one party hides or fails to disclose material information, the prenup may be challenged or invalidated later in court.
Fair and reasonable terms: While prenuptial agreements in Maryland are enforceable, the terms must be fair and reasonable at the time of signing. If the agreement is seen as overly one-sided or unconscionable, a court may invalidate it.
Spousal support (alimony): In Maryland, a prenuptial agreement can include provisions related to alimony. However, courts can review these provisions if they find that enforcement would be unreasonable at the time of divorce, especially if it would leave one spouse in financial distress.
Enforceability: Maryland courts generally enforce prenuptial agreements unless they're found to be unfair, entered into under duress, or based on fraudulent information. Courts will examine the circumstances surrounding the signing of the agreement and may decide that the terms are unreasonable.
Legal representation: It’s crucial that both parties have independent legal counsel when drafting and signing a prenuptial agreement. If one party doesn't have a family law attorney, it could lead to claims that the agreement was unfair or not fully understood.
With these legal considerations in mind, there are many advantages to signing a prenuptial agreement with your future spouse.
Pros of Signing a Prenuptial Agreement in Maryland
Signing a prenuptial agreement in Maryland with the help of a family law attorney can provide important legal and financial protections, creating clarity and security for both parties entering into marriage. Some of the other benefits include:
Protection of assets: If you're entering a marriage with significant assets or property, a prenup can provide protection for your wealth in case of divorce. It helps to make sure that these assets remain separate property and aren't divided during a divorce.
Debt protection: A prenuptial agreement can protect one spouse from being responsible for the other spouse’s pre-marital or personal debts. In Maryland, if no agreement is made, both spouses may be responsible for debts accumulated during the marriage.
Minimizing conflict: Divorce can often lead to contentious disputes over property and assets. A prenup can reduce the conflict by clearly outlining how assets and debts will be divided, creating a smoother process if the marriage ends.
Alimony control: A prenuptial agreement can define how much alimony, if any, will be paid in the event of divorce. This can prevent one party from being at a financial disadvantage, particularly if there's a significant difference in income between the spouses.
Family protection: A prenup can protect family assets or inheritances that one spouse may want to keep separate from the marriage. This is particularly useful for individuals who have children from a previous relationship and wish to make sure that these assets are passed down to their children.
Business protection: If one or both parties own a business, a prenuptial agreement can help make sure that the business remains separate and isn't considered marital property in the event of a divorce.
However, prenuptial agreements aren't perfect, and there are some disadvantages that may arise. A family law attorney can help walk you through these disadvantages before you make your decision.
Cons of Signing a Prenuptial Agreement in Maryland
While a prenuptial agreement in Maryland can offer financial protection, it may also present emotional and legal challenges that could complicate the marriage relationship. Some of the cons of signing a prenup may include:
Perception of distrust: One of the biggest concerns surrounding prenuptial agreements is that they can create an impression of distrust. Some people may feel that asking for a prenup implies that you're already planning for the possibility of divorce, which can undermine the emotional foundation of the marriage.
One-sided agreements: If a prenuptial agreement isn't carefully negotiated, it may be one-sided, where one party is unfairly advantaged. For example, one spouse might be forced to give up their claim to certain assets or be denied fair alimony.
Changes in circumstances: A prenuptial agreement is based on the financial situation of both parties at the time of marriage. However, life circumstances can change over time. The marriage might involve children or a significant change in one spouse's financial status, which could make the terms of the prenup outdated or unfair.
Potential for legal disputes: If the terms of the prenuptial agreement are ever contested in court, it can lead to lengthy and expensive legal battles. Disputes over the enforceability of the agreement, especially if it seems unfair, can complicate divorce proceedings.
Emotional considerations: Discussing the terms of a prenuptial agreement can be emotionally challenging, especially for couples who are deeply in love and see the agreement as a sign of distrust. It can lead to difficult conversations that some may not feel comfortable having before marriage.
Now that you know the advantages and disadvantages of a prenuptial agreement, it may be in your best interest to speak to a family law attorney to decide whether a prenup is right for you and your partner.
Is a Prenuptial Agreement Right for You?
Deciding whether or not to sign a prenuptial agreement is a personal choice that depends on a variety of factors. Consider the following when making your decision:
Financial situation: If you or your partner have substantial assets, debts, or a business, a prenuptial agreement may be a wise choice. It can help protect your interests and clarify financial expectations.
Marriage duration: If this is a second or subsequent marriage, or if there's a significant age gap between the partners, a prenuptial agreement might be particularly important, as there could be greater financial disparities or a need to protect children from previous marriages.
Level of trust: If you and your partner have open and honest communication about finances and trust each other deeply, you may feel comfortable foregoing a prenuptial agreement. However, if either partner has concerns about asset protection or financial security, a prenup might offer peace of mind.
Legal and financial advice: Consult with an experienced family law attorney in Maryland before making a decision. A family law attorney can provide guidance on what is fair and reasonable in a prenuptial agreement and help make sure that the agreement is enforceable.
In Maryland, signing a prenuptial agreement can be a wise decision, particularly for those with substantial assets, debts, or businesses. However, it's essential to approach the matter with care, making sure that both parties understand the terms, have independent legal counsel, and make the decision voluntarily.
Contact a Family Law Attorney Today
If you and your partner are considering signing a prenuptial agreement, don't hesitate to contact Kathleen M Kirchner, Attorney at Law. Attorney Kirchner serves clients throughout Anne Arundel County, Queen Anne's, Calvert, Prince George's, and Howard, Maryland. Reach out today to schedule a consultation.