If you’re thinking about getting a prenuptial agreement in Maryland soon, congrats to you on both the engagement and the step toward financial security and marital harmony. Prenups are not just about protecting assets but also about facilitating communication in your relationship. But before taking the plunge into your prenup journey, there are five things you should understand about prenuptial agreements in Maryland. Let’s dive in.
1. Maryland’s legal requirements for prenuptial agreements
Maryland doesn’t technically have one specific statute that governs prenuptial agreements. Instead, it has a patchwork of different statutes that mention prenuptial agreements and case law that help carve out the requirements. (See Md. Code, Est. & Trusts § 3-406; Md. Code, FL§ 11-101; Stewart (2013)).
Here’s what to know about getting a valid and enforceable prenup in Maryland:
- The agreement must be in writing and signed by both spouses
- Each party must provide full, frank, and truthful financial disclosure
- The agreement must be entered into voluntarily (not through overreaching or duress)
- The agreement must be reasonable and fair to both parties
- The agreement must not include terms against public policy or any laws
As you can see, Maryland laws around prenuptial agreements are meant to protect both parties and deter fraud and duress in the creation of one.
2. Maryland follows equitable distribution laws for property division
It’s important to understand what happens in Maryland when you do not have a prenuptial agreement. When you get a divorce in MD, the judge will follow the framework of equitable distribution when dividing up the couple’s assets. This means assets are split equitably, not necessarily 50-50. The court will instead rely on a set of statutory factors, such as the length of the marriage, the contributions from each of the parties, the ages of the parties, and more, when making this determination. (Md. Code, Fam. Law § 8-205). As you can see, how your property will be split up can be incredibly complicated and uncertain.
With a prenuptial agreement, you are able to create predictability by outlining exactly how you want your assets to be divided and not allow a judge to make that decision. By creating a prenup that is fair but also protects each party, you can create clarity and peace of mind during your marriage.
3. Full, frank, and truthful financial disclosure is required
Financial disclosure is a crucial aspect of a Maryland prenuptial agreement. This means that each partner must share the full values of their income, assets, debt, and future inheritances without omitting any numbers or pieces of information. The finances should be written down in a financial schedule which gets attached to the prenuptial agreement to ensure it is documented that both parties viewed and signed off on each other’s finances.
Why is this important? Financial disclosure puts each partner on notice of what their partner has. Parties cannot make informed decisions in their prenup without understanding what money each person has (or doesn’t have). To illustrate, imagine a world where a couple is signing a prenuptial agreement that says “all debt should be split evenly,” but unbeknownst to one partner, the other has $500,000 in debt. This issue is easily resolved with financial disclosure and allows people to make an informed decision about debt (or other clauses) because they understand what their partner’s finances look like.
4. You shouldn’t sign and notarize your Maryland prenuptial agreement digitally
Maryland is one of the few states that do not allow virtual e-signing. This means you must get your prenuptial agreement inked with a real pen in order to be considered valid and enforceable. Maryland law, specifically the Maryland Uniform Electronic Transactions Act (UETA), explicitly prohibits the electronic execution of family law matters, which likely extends to prenuptial agreements. So, to sum it up, in Maryland, prenups must be executed with traditional, physical signatures to be legally enforceable.
5. Prenuptial agreements in Maryland do more than just protect finances
Prenups are more than just a way to protect individual interests. Prenups can also help align couples prior to entering a marriage by requiring them to discuss hard topics—like money, divorce, death, retirement, and so much more. Having these discussions and coming to an agreement on various areas allows the couple to better understanding one another and walk into the marriage with expectations set.
For example, consider a couple, Sarah and David, entering their second marriage, each with children from previous relationships. Through the prenup process, they have been able to:
- Address the disposition of their respective premarital assets, ensuring their children’s inheritance rights are protected.
- They also outlined their intentions regarding joint and separate bank accounts, specifying how household expenses will be paid and shared.
- They established a framework for handling potential future purchases, such as a family home or if they start a business together.
This process of detailed planning helped Sarah and David get on the same page by understanding who owns what, who is responsible for paying what, and talking through protections for their separate children. This helps reduce the likelihood of future conflicts related to finances and estate planning and solidifies their financial future together.
The bottom line on Maryland prenuptial agreements
There you have it! The top five things to know about getting a prenup in Maryland. It’s easy to accomplish, especially with tools like HelloPrenup, which makes the prenuptial agreement process streamlined and stress-free. As long as you follow the legal requirements laid out by Maryland law, including financial disclosure and signing the agreement with wet ink, you should be good to go! And don’t forget to understand the default laws in Maryland without a prenup so you go into the process fully informed. Happy planning!
Cary Jacobson is the founder and CEO of Jacobson Family Law. Cary has been practicing law for over a decade, having successfully represented clients in all facets of family law proceedings. Jacobson Family Law focuses on assisting clients in creating out-of-court solutions to their separation, divorce, custody, and other family law matters without the drama and stress associated with litigation. Additionally, Jacobson Family Law assists clients with protecting their assets through the negotiation of pre/post-nuptial agreements and estate planning.
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