A prenuptial agreement can help you and your future spouse decide how financial matters will be handled if the marriage ends or one spouse passes away. Before signing, you should understand what the agreement covers, make full financial disclosures, allow enough time for review, and make sure both parties enter into it voluntarily.
While discussing a prenup may feel uncomfortable, having these conversations before marriage often helps couples establish clear expectations and reduce future disputes.
What Is a Prenuptial Agreement?
A prenuptial agreement, often called a prenup, is a written contract signed before marriage that outlines how certain financial matters will be handled during the marriage, in the event of divorce, or after the death of a spouse.
In Maryland, a properly prepared prenuptial agreement can address issues such as:
- Division of property and assets
- Responsibility for debts
- Spousal support, in some circumstances
- Ownership of businesses or professional practices
- Protection of inheritances and family assets
A prenup cannot determine child custody or child support. Maryland courts decide those issues based on the child’s best interests at the time they arise.
What Should You Do Before Signing a Prenuptial Agreement?
Before signing any agreement, take time to understand exactly what it says and how it could affect your future.
Some of the most important steps include:
Make Sure You Understand Every Provision
Never sign a prenup simply because you trust your future spouse or want to avoid conflict. You should understand every section of the agreement, including how it affects your property rights, financial obligations, and future claims.
If something is unclear, ask questions before signing.
Exchange Complete Financial Information
A prenuptial agreement should be based on accurate financial disclosures from both parties.
This generally includes information about:
- Income
- Bank accounts
- Investments
- Retirement accounts
- Real estate
- Businesses
- Existing debts
Full financial disclosure is more than a good idea in Maryland. In Cannon v. Cannon, Maryland’s highest court explained that engaged couples have a confidential relationship, meaning courts closely examine whether each person fully understood the other’s financial circumstances before signing. Complete financial disclosure, or proof that the other party already had adequate knowledge of those finances, can be an important factor in determining whether a prenuptial agreement will be enforced.
Give Yourself Enough Time
One of the biggest mistakes couples make is waiting until the last minute.
Signing a prenup days, or even hours, before the wedding can create arguments that one person felt pressured into signing. Giving both parties adequate time to review the agreement demonstrates that the decision was made thoughtfully and voluntarily.
Can You Negotiate a Prenuptial Agreement?
Yes. A prenup should never be viewed as a take-it-or-leave-it document.
Both parties can propose changes, negotiate terms, and discuss provisions that better reflect their financial goals and future plans. These conversations often result in an agreement that both individuals feel is fair.
Negotiation may involve questions about:
- Separate versus marital property
- Future appreciation of assets
- Business ownership
- Responsibility for student loans or other debts
- Potential spousal support provisions
Taking time to negotiate can strengthen the agreement and reduce the likelihood of disputes later.
Can a Maryland Court Refuse to Enforce a Prenup?
In some situations, yes.
Although Maryland generally recognizes valid prenuptial agreements, a court may refuse to enforce one if there are significant legal problems with how it was created or executed.
Examples may include:
- A spouse signed under fraud, duress, or coercion
- Important financial information was intentionally concealed
- The agreement was not entered into voluntarily
- Other circumstances call the agreement’s validity into question under Maryland law
Every case depends on its own facts, which is why careful preparation matters from the beginning.
Why Is Independent Legal Advice Important?
While Maryland law does not require each party to have separate attorneys, independent legal advice can help ensure both individuals understand the agreement before signing.
Having your own attorney allows you to:
- Review whether the terms are fair
- Identify potential legal issues
- Suggest revisions when appropriate
- Better understand the rights you may be giving up
Independent representation may also reduce the likelihood that the agreement will later be challenged on the basis that someone did not fully understand its terms.
Start Your Marriage With Clear Financial Expectations
A prenuptial agreement is one of the few legal documents created before a dispute exists. Taking the time to prepare it carefully can help avoid misunderstandings later and give both spouses a clear understanding of their financial rights and responsibilities.
If you are considering a prenuptial agreement in Maryland, Darin L. Rumer can review your circumstances, explain your options, and help you prepare or evaluate an agreement that reflects your goals. Contact us today to schedule a consultation before you sign.