What You Need to Know About Prenuptial Agreements in Maryland

A prenuptial agreement is a written contract between two prospective spouses that specifically details where they stand on a set of issues. Typical issues addressed within prenuptial agreements include property division, child custody, and alimony in the event the marriage ends in divorce. In essence, a prenuptial agreement acts as a binding contract that outlines what each party can expect to receive once the marriage ends.

While the assumption is that prenuptial agreements are only designed to protect wealthy individuals, and therefore should only be used when one spouse is extremely wealthy, that is not so much the case today. Prenuptial agreements are often employed by couples as a way to protect a family business or asset, or even agree upon what types of assets would be included in a divorce settlement. No matter the amount of assets you’re walking into a marriage with, a prenuptial agreement can avoid costly conversations about "who gets what" if a divorce occurs.

Maryland has strict rules about what can be included in a prenuptial agreement. The agreement can generally cover alimony, property rights, and personal rights upon dissolution of a marriage. The co-signing spouses essentially agree to financial rights and obligations that exist both at the time of the marriage, and in the event of its termination. Some of the issues one would typically find in a Maryland prenuptial agreement include:

• Who controls property and assets during a marriage
• Who is entitled to alimony after a divorce
• Whether retirement accounts will be divided upon dissolution or remain separate throughout the marriage
• How life insurance policy proceeds would be distributed
• Whether wills should be in place in order to distribute property and assets

While the above isn’t an exhaustive list of what can be included within a prenup, it’s a good place to start when considering what you might wish to include in yours. Being as specific as possible will ensure you cover all the bases and make the painful process of divorce as painless as possible.

Notably, Maryland does not allow prenuptial agreements to dictate how child custody and child support will be handled in the event of a divorce. Instead, Maryland law obliges parents to make those decisions once a divorce occurs.

Spouses are able to challenge the validity of a prenuptial agreement when one of several conditions can be shown to have existed at the time of its signing. These include:

• fraud
• duress
• coercion
• mistake
• undue influence
• incompetence, or
• unconscionability (extreme unfairness in dealing)

If you are wondering whether a prenuptial agreement is right for you and your soon-to-be spouse, there are a few things you should know and keep in mind as you make your final decision.