Maryland Postnuptial Agreements: Safeguarding Your Financial Future

As your finances grow during marriage, your legal protections should grow with them. Since 1987, our attorneys at the Law Office of Kevin L. Beard, P.A., have helped clients create comprehensive Maryland postnuptial agreements that establish clear financial boundaries. Rather than having a court determine what belongs to whom, you and your spouse can make that decision together.

What Is A Postnuptial Agreement?

In terms of legal weight and enforceability, a postnuptial agreement works the same way as a prenuptial agreement. Both fall under the Maryland Code of Family Law § 8-101, which establishes that married spouses can enter into binding agreements on property rights, support and alimony

The only difference is timing. A prenuptial agreement, as the name implies, is executed before the wedding. A postnuptial agreement, on the other hand, can be signed at any point during the marriage.

The Difference Between Separate Property And Marital Property

Separate property is what each spouse owned before the wedding, as well as any gifts or inheritances received during the marriage. Marital property is what the couple acquires together during the marriage. In a divorce, Maryland family courts divide marital property equitably between both spouses.

However, the difference between the two can blur when financial circumstances change. For example:

• A business owned before the wedding can become partially marital if it grows through either spouse’s efforts or with marital funds.
• Income earned during the marriage is marital property, along with any retirement accounts, investments and savings it funds.
• An inheritance is separate property but loses that status if commingled with marital funds.
• Property purchased during the marriage is marital property, regardless of which spouse’s income paid for it.

A post-marital contract in Maryland clarifies ownership in writing before any dispute forces the decision. It can also establish what happens to those assets if the marriage ends.

What Makes A Postnuptial Agreement Valid And Enforceable?

In Maryland, there are three conditions for enforceability:

• Voluntary execution: Both spouses must sign freely, without pressure or coercion.
• Full financial disclosure: Each spouse must provide a complete, honest account of all assets and debts.
• Written form: The agreement must be in writing.

Maryland law does not require separate attorneys for each spouse. However, a court reviewing a challenged agreement will ask whether each spouse understood what they were signing. Independent counsel makes that answer straightforward.

A postnuptial agreement also reduces litigation risk down the road. When financial terms are already defined in writing, there is far less for a court to resolve if the marriage ends.

Protect What You’ve Built. Schedule A Free Consultation.

You and your spouse can define your financial future on your own terms, together. Our postnuptial agreement attorneys at the Law Office of Kevin L. Beard, P.A., have extensive experience with cases that involve complex financial estates across Catonsville, Baltimore County, Howard County and Carroll County.

Call us today at 410-929-7197 for a free initial consultation. You can also send us your questions through our website.