3 Myths About Premarital Agreements You’ve Heard That Just Aren’t True
“A prenup is just asking for bad luck in my marriage.”
“I don’t have a whole lot of money, a premarital agreement isn’t necessary.”
“Discussing a prenuptial agreement is just too uncomfortable”
Sound familiar? These are just some of the most common thoughts people have when contemplating whether or not they should enter into a premarital agreement. That’s why in this blog, we’ll discuss and debunk a few other common myths about prenups:
Myth #1: It’s All About the Benjamins
Despite popular belief, prenuptial agreements aren’t just for the wealthy. Regardless of what’s in your bank account, a prenup can detail how to split, both, finances and debt, financial support in the event that one spouse leaves employment to say home and raise the children, alimony/palimony, and inheritances for any children from a previous marriage. You can also detail other items, such as responsibilities for aging parents, and estate planning options. In this way, you will have peace of mind knowing you and your future spouse have discussed all of these important aspects that could make or break a marriage, and helps ensure the future success of everyone involved.
Myth #2: Prenuptial Agreements Aren’t Recognized by the Courts
While it’s true that some prenups have been deemed unenforceable for various reasons (more on that in a later blog), following a few guidelines and having an attorney prepare your prenuptial documents greatly decreases the likelihood that your agreement could be challenged in court. Many states and the District of Columbia utilize the Uniform Prenuptial Agreement Act to determine the validity of premarital agreements. Some states, like Maryland, do not use this Act.
To be considered enforceable, in Maryland, a prenuptial agreement should follow the same general guidelines as other contracts, including but not limited to:
- The prenuptial agreement must be in writing and signed by each spouse
- Each party must have provided a full list of their assets and debts
- The prenup should be signed willingly and free from coercion, undue influence, fraud, or duress.
Having an attorney prepare your premarital agreement and having an accountant draw up certified financial statements will eliminate most if not all questions of enforceability and validity of your agreement.
Myth #3: Prenuptial Agreements Only Come into Play in the Event of Divorce
Many people don’t realize that a prenuptial agreement can be an integral part of your estate plan. In it, couples can differentiate between separate and marital property, which prevents assets from being misclassified in the event that a spouse dies. This is particularly effective for those entering into their second marriage.
Making decisions about your future when you and your soon-to-be-spouse are calm, collected, and happy can lead to a much more peaceful result should problems occur down the road. For anyone entering into marriage, a premarital agreement should be high on the priority list. While discussing the “what ifs” can be uncomfortable, it’s important to understand that these agreements protect both parties, their future, and their family.
If you are ready to tie the knot and would like information on how a premarital agreement can benefit you and your partner, call Garner Law PLLC at (202) 627-6809, or email us at info@garnerlawpllc.com today!