Prenuptial Agreement
A prenuptial agreement is a contract between two people that intend to marry. It typically drafted prior to the marriage and defines what will be considered marital property and what will remain separate. It will also address other issues, including alimony, if the parties divorce. The Law Office of Neveen H. Kurtom can assist you in drafting and negotiating prenuptial agreements to ensure your rights are protected.
Requirements of a Valid Prenuptial Agreement
A prenuptial agreement is a legally binding contract, so the parties entering into such an agreement need to observe certain formalities to ensure that the contract is valid. In order to have a valid prenuptial agreement under Maryland law, the prenuptial agreement must be in writing and signed by both parties. Both parties also need to voluntarily agree to the contract because if there is evidence of force or coercion, the agreement will be unenforceable.
Disclosure of Property
Each party needs to provide a fair and reasonable disclosure of property or financial obligations to the other. If a party does not provide such a disclosure and the other party does not expressly waive the right to such information, the person who did not get the financial information may later seek to have the agreement declared unconscionable and unenforceable.
Issues Raised in a Prenuptial Agreement
A prenuptial agreement may cover a variety subjects, including:
The rights of each party to use property during the marriage
Alimony
Disposition of marital property in the event of death or divorce
Ownership of and rights to benefits from life insurance policies
Choice of law controlling the agreement
Prenuptial v. Postnuptial Agreements
Prenuptial agreements are created and entered into prior to the parties’ legal marriage, whereas a postnuptial agreements are created after the parties are married. A postnuptial agreement can cover the same issues as the prenuptial agreements. Some of the reasons why parties decide to enter into a postnuptial agreement may include:
To address existing or accrued debt by one of the spouses
To address future inheritance from a relative
To address the distribution of marital property in the event of a divorce
Regardless of which option you choose, it is important to consult with an experienced attorney who can ensure that the agreement is valid under Maryland law. Any agreement that contains unfair or illegal elements can be challenged during a divorce proceeding and may potentially be dismissed entirely by a judge. In determining whether an agreement is enforceable, the court will evaluate:
Whether the agreement was reasonable
Whether there was consideration on both sides
Whether both parties fully and honestly disclosed their property and assets
Whether both parties entered into the agreement voluntarily and knowingly and without coercion
Whether both parties were represented by counsel before the agreement was executed
If a prenuptial or postnuptial agreement fails to meet one of the above criteria, then the agreement may not hold up in court. If you have any questions about a prenuptial or postnuptial agreement, please call us at (443) 741-2567 and let us help you prepare for your future.