Benefits Of A Prenuptial Agreement In Maryland

Prenuptial Agreements are becoming increasingly common between couples, both young and old, who plan to get married. In this article, we previously discussed the basics of Prenuptial Agreements – including what they are, what they can (and cannot) cover and the process of obtaining a Prenuptial Agreement. Prenuptial Agreements are a powerful tool to give you and your partner a secure, strong and stable foundation as you head into your marriage. Here are a few of the specific benefits of entering into a Prenuptial Agreement in Maryland:

1. Protecting Your Assets.

People enter into marriages at all different ages and phases of life. Sometimes, people enter into a marriage with little to no money or property. Other times, people enter into marriages having already acquired significant assets prior to the marriage. In either case, a Prenuptial Agreement can be a very helpful tool to protecting your assets.

Through a Prenuptial Agreement, each party typically identifies any assets that they have heading into the marriage. The Prenuptial Agreement will typically identify such assets with particularity and how those assets would be treated in the event of a divorce. Equally as important, the Prenuptial Agreement will address what happens with assets acquired during the marriage. For example, if the parties decide to purchase a house after they get married, the Prenuptial Agreement can help address what happens with the house in the event of a divorce. Put simply, a Prenuptial Agreement can give the parties a roadmap for how to handle major assets such as a house and retirement accounts in the event of a divorce.

2. Addressing Alimony, Debt And Other Marital Issues.

Prenuptial Agreements require people to have conversations up front about their finances. In addition to discussing how each spouse’s assets will be handled, parties to a Prenuptial Agreement should also discuss issues like alimony, debt and other finances. For example, much like cash and other assets, people often enter into marriages with varying levels of debt. You or your partner may have existing credit card debt, personal loans or other debt which needs to be repaid. A Prenuptial Agreement can address who will be responsible for such debt – including future debt that may be acquired during the course of the marriage.

There are also other financial issues and potential obligations which the parties can address through a Prenuptial Agreement. For example, if both parties enter the marriage knowing that they are self-supporting, they may want to discuss whether they feel comfortable waiving any claim for alimony against the other spouse in the event of a divorce. That way, both parties can enter the marital relationship with a clear understanding of their marital rights and obligations.

3. Simplifying The Divorce Process.

Prenuptial Agreements allow people to simplify the divorce process by establishing their marital rights and obligations ahead of time. In the event of a divorce, without a Prenuptial Agreement, both parties will be forced to address their marital property, debt and other financial issues with a great deal of uncertainty. This often results in contested divorce litigation, requiring the parties to incur additional attorneys’ fees, stress and a longer road to divorce. With a Prenuptial Agreement, many of the financial issues customary to divorce will have already been agreed to by the parties. This will allow the parties to move forward more quickly and efficiently with the divorce.

Robert Greenberg, Esq. and the law firm of Greenberg Legal Group LLC have extensive experience drafting Prenuptial Agreements and representing clients throughout the negotiation process. Our firm is located in Annapolis, Maryland and practices in Courts throughout the State of Maryland. Please contact our office at (410) 650-4242 for further assistance.