How Does a Maryland Prenuptial Agreement Work?
A prenuptial agreement is a written contract between two people who intend to marry. These types of agreements address the individuals’ obligations to one another during marriage as well as their obligations in the event of separation, divorce, or death.
For the most part, a prenuptial agreement defines the couple’s expectations of one another. Whether or not the couple fulfills those expectations, they will have made their wishes clear on the matter, which will prevent possible future disagreements on the issues.
While prenuptial agreements are common in most U.S. states today, they were once seen as a controversial way to approach the issue of marriage. However , current day prenuptials can be considered a method for obtaining a number of positive outcomes regarding a marriage. For one, couples can avoid acquiring debts that are beyond their capacity to pay. They can also make decisions about whom will be responsible for certain assets in the event their marriage fails.
Since prenuptial agreements are contracts, they must meet the requirements of a legally binding contract. An agreement between two people intending to marry in Maryland must be in writing, and must be signed by both parties. The requirements of any legally binding contract must still be met – such as the agreement having the independent advice of an attorney for both parties, and both parties having sufficient time to go over the contract before signing it.
What Does the Law State in Maryland
Maryland courts have recognized the importance of prenuptial agreements as tools for financial planning. However, to be enforceable, a prenuptial agreement must meet certain legal requirements. The first requirement is that the agreement be in writing. (Md. Fam. Law Code Ann. § 8-201(b)(1) (2014)).
There are two other conditions that must be met in order for a prenuptial agreement to be enforced. A prenuptial agreement must be entered into voluntarily, and without fraud or undue influence. (Md. Fam. Law Code Ann. § 8-201(b)(2)(ii)(1) (2014)). The party seeking to enforce the prenuptial agreement has the burden of establishing that its provisions are enforceable under the law. (Md. Fam. Law Code Ann. § 8-201(a) (2014)). Although original drafts of the agreement or correspondence between the parties can help establish voluntariness and/or lack of fraud, a signed copy of the final agreement will go a long way in proving the agreement was not signed under duress. (Beer v. Beer, 174 Md. App. 667, 676-77, cert. denied, 400 Md. 650 (2007)). A prenuptial agreement entered into in good faith by both parties is presumed to be fair, and thus enforceable. (Md. Fam. Law Code Ann. § 8-201(c) (2014)).
Advantages of Utilizing a Prenuptial Agreement Template
The biggest benefit of a prenup template involves the fact that it will ensure that you have provided, in general terms, proper disclosures of your financial situation. Many people will tell you that prenups are contracts of disclosure. Their point is that to the extent that you have properly disclosed your assets and liabilities, and the other side has as well, then the agreement that you sign will be enforceable.
The second benefit of using a prenuptial agreement template is that it provides a familiar framework used by many couples around the country. The template sets up each section, including how it should be formatted, leaving spaces for your specific details. This means that you will not need to worry about the format appearing messy or incomplete. Many people are surprised at how much time is saved due to a clearly spelled out template.
This leads right into the time savings. The standard clauses have been written already for you in the template, and you simply insert your information. Once you have inserted your information, then you and your fiancé can review each term. This brings us to the next benefit: possible cost savings. If you and your fiancé decide to just use a prenup template rather than spending thousands of dollars on drafting a fully customized agreement, you can save a ton of money.
Finally, a prenup template can save you the effort of a lot of back and forth with your spouse. If both of you try to use the same template and your answers are in agreement, then the finished product is much easier to comprehend. There are fewer surprises and both of you are satisfied with the end result.
Key Clauses to Add
When creating a Maryland prenup, there are certain elements that must be included for the document to be valid. For instance, the agreement must be: Also, the following is a non-exclusive list of the types of clauses you should consider including in your prenup . The reason for this is that such an agreement is only binding on those specific issues if they are listed within the confines of the contract: You may also want to define alternative dispute resolution procedures for your prenup or even make the contract "mystery-proof," meaning that you desire to create a comprehensive agreement of every potential outcome, down to a detailed list of who gets the new kitchen appliances should you split up.
Common Errors to Avoid
Common Mistakes to Avoid When Using a Maryland Prenup Template
While it may be tempting to draft your prenuptial agreement without the assistance of a legal advisor, this can easily backfire during the divorce process. A qualified Maryland and D.C. divorce lawyer will advise you to seek the counsel of a financial professional. They also are excellent sources for prenuptial templates in Maryland that are suited to your specific needs. While it’s possible to modify a template agreement using a word-processing program, you can overlook countless other details that will call into question the validity of a prenup. This could result in a judge throwing out your agreement altogether. Here are the most common mistakes people make when using a premade template: No matter how standard a particular template may claim to be, it cannot account for all circumstances. Many a prenuptial agreement has gotten tossed due to the inclusion of terms that later proved to be less than just or unlawful. Although Maryland recognizes the validity of premarital agreements, state law also prohibits the enforcement of certain contract provisions. Laws in other states may be more or less favorable to prenups. A qualified divorce lawyer is familiar with the specific laws that govern your state and can tailor your agreement accordingly. A prenuptial agreement is a legally binding contract, so you must use very specific language. A flimsy template is no substitute for the counsel of a qualified attorney who is experienced with prenups in Maryland.
How to Get the Perfect Template for Your Needs
Choosing the right prenuptial agreement template is crucial in ensuring that the final agreement will meet your specific needs and will be in full compliance with the law. Here are some general tips to help you find the most suitable Maryland prenuptial agreement template: Look for templates that are downloadable with modification features. These templates should include sample paragraphs that you can copy and paste into your draft. Ideally, your template should allow you to add elements as your needs require and seamlessly remove the elements that you do not need. Make sure that your selected template meets the legal requirements of a legally binding prenuptial agreement in Maryland. These requirements include the mandatory disclosure of assets and liabilities of both parties, a provision for the consideration provided for the prenuptial agreement, evidence that both parties voluntarily entered the agreement , mutual agreement of both parties to all provisions and that the agreement was entered into in the absence of material misrepresentations or fraud. Your template should help ensure that these requirements are met at every stage of the document. Exercise your due diligence when looking for prenuptial agreement templates online. Look for templates offered on a reputable website. You may also want to check out reviews from previous users and examples of the templates provided by the seller. Never purchase a template that does not provide you with an easy way to preview the template before making your decision. For example, our office provides a sample Maryland prenuptial agreement on our website that is free for download. The download is secure and allows you to decide if the template is right for you without having to provide any information at all. This template includes basic provisions in addition to a schedule for the exchange of financial information and disclosures. Be sure to consult with your attorney before using a Maryland prenuptial agreement template. An attorney can help you determine your specific needs and determine if a template is suitable. Your attorney can also counsel you on what elements to include, based on your circumstances, and help you troubleshoot any potential issues.