Monthly Archives: October 2021

Prenuptial Agreements in Maryland: Do I Need One?

Are you thinking about how to protect your assets before marriage, but are worried that prenuptial agreements are only for the very rich or very skeptical?

Fortunately, prenuptial agreements are no longer viewed as the ominous, unromantic precursors to divorce for a couple. Instead, prenups have become widely recognized as the wisest way to clarify and protect oneself within one of the most significant contracts a person will ever enter into—the contract to marry. This, in addition to the fact that many couples are marrying later in life or entering their second marriage when they already have children from a prior relationship and accumulated a significant amount of wealth on their own accord.

The Benefits of Prenuptial Agreements

There are many advantages to having a prenuptial agreement in place with your soon-to-be spouse. Prenuptial agreements ensure that in the event of a divorce, there will be fewer costs and arguments in a trial, saving the couple thousands of dollars and several hours of their time.

Additionally, litigation is public, lengthy, stressful, and has an unknown outcome depending upon the discretion of a family court judge. Prenups keep the process of separation quick, private, and enforce the preferences of the individual parties.

Prenups are negotiated before marriage, in a time of harmony versus anger, which leads to optimal choices and ideal outcomes for all parties. Before marriage, parties are better able to negotiate the terms of a possible divorce without bitterness and anger.

Prenups can improve the quality of marital life and prevent tension that could contribute to marital discord. A premarital agreement can ensure that the party devoting more time to childrearing and homemaking feels financially protected when sacrificing career opportunities, thus avoiding angst or resentment during the marriage. It can also assure a party with significant premarital assets, which might involve deep bonds with extended family, that divorce will not impact his or her legacy. Also, prenups can allow each party to retain sole ownership of personal property with sentimental value, avoiding fear of loss of treasured possessions.

What Is Included in a Prenuptial Agreement?

The most significant financial issues that arise in a traditional divorce can be settled before divorce in a prenup. Alimony may be agreed upon in a prenup, including whether it will be paid, to whom, how much will be paid, and for what period of time. The disposition of each spouse’s assets, including both real and personal, may be prescribed in a prenup. A prenuptial agreement may specify the disposition of a couple’s retirement funds, as well as their wills and estates and life insurance distribution. Each party’s ability to manage, buy, control, or sell property during the marriage can be agreed upon in the contract as well.

What Is Not Permitted in a Prenuptial Agreement?

It should be noted that child support and child custody arrangements are not legally permissible aspects of a prenuptial agreement, and will not be enforced by the courts.

How Is a Valid Prenuptial Agreement Executed in Maryland?

A prenuptial agreement is valid if it is in writing and signed by both spouses. Oral agreements are not enforceable by law. The prenuptial agreement becomes enforceable only after the couple marries.

When Is a Prenuptial Agreement Unenforceable in Maryland??

Courts seek to enforce a divorcing couple’s prenup even if there are minor errors in the document. However, if any of the following circumstances are proven, a court will disregard the contract:

Fraud. A finding of fraud can invalidate a prenuptial agreement. An example of this would be if one spouse had not disclosed assets to the other.
Duress or undue influence. While difficult to prove, showing that one spouse coerced or threatened physical or psychological harm would invalidate the contract.
Incompetence. If one spouse was mentally incapable of understanding the prenup at the time of signing it, the agreement will be unenforceable.
Unconscionability. A court will rarely weigh in on the terms of a prenup. However, if extreme unfairness in the agreement rises to the level of “shocking,” the court can refuse to enforce it.

Prenuptial agreements should be drafted by experienced attorneys representing each spouse separately. The lawyers at TNS can safeguard your most impactful contract and promote peace of mind during your marriage by drafting a prenup that is enforceable and agreeable to both soon-to-be spouses.

If you have questions about prenuptial agreements, please contact Turnbull, Nicholson & Sanders, P.A. at (410) 339-4100 or info@tnsfamilylaw.com. Our team of family law attorneys is here to help guide you.

5 Post-Divorce Actions to Take

After your divorce is finalized, you will most likely feel a deep sense of relief. We encourage you to take a few days to relish the completion of the process. After all the litigation or negotiations and emotional turmoil, you can now start the next chapter of your life.

But do not get too comfortable! Once the divorce proceeding and all provisions of your Judgment of Absolute Divorce are complete, you should also take the following actions as soon as possible to avoid potentially costly errors and the stress of a lingering to-do list.

1. Revise Your Estate Plan. After a divorce, most people no longer wish to have their former spouse designated as a beneficiary of their property upon their death. It is important to update your will with an attorney so that your former spouse and any other unwanted beneficiary designations are removed. That would include your retirement plans and life insurance policies. Be advised that the court will not presume error in the event of your failure to make these changes, and in the absence of these actions, your former spouse could receive substantial proceeds or cause protracted litigation for surviving family members. Your family will have a hard time winning a case in which the designations have not been modified by you.

2. Update Your Insurance Coverage. It is important to ensure that there are no lapses in your insurance coverage. Update health, dental, life, car, and homeowners insurance policies to reflect either a continuation of coverage or an entirely new plan. Please note that submitting evidence of the divorce decree enables former spouses to acquire a new medical plan without having to wait out the cycle time otherwise required by insurance companies.

3. Note Changes in Your Tax Returns. Single status affects income tax filing in a myriad of ways. The implications of no longer filing joint tax returns include deductions, exemptions, increased and decreased income assessments, gains, etc. Keep in mind that neither alimony nor child support payments are taxable or tax deductible. It is important to address and update your status immediately so as not to submit faulty returns and incur penalties. It is also important for budgeting purposes to best understand the disposable income net of your tax bill.

4. Create a Budget. After a divorce, expenses and even lifestyle will likely change significantly. Determining precisely how these changes will impact your finances requires time and concentration, but saves time and stress in the long haul. Use past credit cards and billing statements to project which expenses will continue and which have changed due to your newly single status and living arrangement. Prepping for this clearly and in advance of any surprises will make for the best start for your future.

5. Consult the Experts. Cultivate your own trusted network of experts to turn to for advice and best practices for your post-divorce transitions. Take the time to interview accountants, financial advisors, estate planning attorneys, mental health professionals, and other necessary experts. As new questions and life changes require experienced solutions, having your own carefully cultivated support system on hand will provide efficiency and reduce stress.

At TNS, we can help with follow-through on your post-judgment to-do list, including making sure debts are properly paid, divorce decrees are submitted to the appropriate organizations, and that titles are transferred from names on bank accounts and retirement accounts.

If you have questions about divorce, please contact Turnbull, Nicholson & Sanders, P.A. at (410) 339-4100 or info@tnsfamilylaw.com. Our team of family law attorneys is here to help guide you.

Related Posts:
Can I Modify My Child Custody Agreement?
Division of Property in Maryland Divorce
Maryland Divorce FAQs