A prenuptial agreement is a legal document that both spouses sign before their marriage that clearly defines what assets or debts each brings into the marriage and/or what will happen to jointly owned property if the marriage dissolves.
A prenuptial agreement is commonly used when one spouse is unequally wealthy in comparison to the other. Assets acquired and debts accumulated while married are considered marital property, but a prenuptial agreement can also define what will happen to those types of property as well.
A postnuptial agreement can also be created, sometimes in cases where both parties are seeking an amicable divorce and other times when couples become business partners. For example, if a married couple co-founded a successful company, it would be in the company’s best interest to have a clear plan in place if the marriage turns sour.
Prenuptial agreements sometimes have a negative stigma attached to them because people don’t find them to be very romantic, and we want our marriages to be very romantic. The truth is that no matter how much romance you feel for your partner, entering a marriage is also entering a binding legal agreement with financial ramifications, and it’s worth taking the time to consider worst-case scenario plans.
A Howard County, Maryland family law attorney can provide more information about pre- and postnuptial agreements.