Maryland Prenuptial Agreements
Maryland does not have a statute governing Prenuptial Agreements. To provide the maximum protection for parties who enter into Prenuptial Agreements in Maryland, attorneys look to contract law and case law, which together provide a robust framework to evaluate the enforceability of Prenuptial Agreements. In Maryland, consummation of the marriage is sufficient consideration for a Prenuptial Agreement. Under Nouri v. Dadgar, 226 A.3d 797 (Md. App. 2020), religious marriage contracts are held to the same standard as secular Prenuptial Agreements.
Under Maryland case law, to enforce a Prenuptial Agreement the proponent must show there was no "overreaching" which can be done through showing there was full, frank, and truthful financial disclosure. Actual adequate knowledge of the finances of the other party can be a substitute for full disclosure, though generally the clarity of full disclosure is preferable. Maryland courts have routinely emphasized the importance of each party knowing what they are waiving when they enter a Prenuptial Agreement.
Additionally, under Maryland contract law, a Prenuptial Agreement cannot be unconscionable, which means "extreme unfairness" as evidenced by one party's lack of meaningful choice and contractual terms that unreasonably favor the other party. Maryland case law also emphasizes that it is important for both parties to have the opportunity to consult with their own lawyer (even if they do not take advantage of that opportunity) and neither party should be discouraged in any way from doing so.
The leading Maryland Supreme Court (formerly the Maryland Court of Appeals) case regarding Prenuptial Agreements is Cannon v. Cannon, 865 A.2d 563 (Md. 2005). Cannon emphasized that a confidential relationship exists between parties contemplating marriage and entering Prenuptial Agreements. In Cannon the Maryland Supreme Court held that Prenuptial Agreements should be evaluated to determine whether there is "overreaching, that is, whether in the atmosphere and environment of the confidential relationship there was unfairness or inequity in the result of the agreement or procurement." The Maryland Supreme Court in Cannon explained that where there is full, frank, and truthful financial disclosure, there can be no overreaching and the attacking party can then only rely on other common law contract defenses (e.g. fraud, duress, coercion, mistake, undue influence, or incompetence) to attack the Prenuptial Agreement. For this reason, full financial disclosure is arguably the most important aspect of a Prenuptial Agreement in Maryland.
A subsequent important case in Maryland regarding Prenuptial Agreements is Stewart v. Stewart 76 A.3d 1221 (Md. App. 2013). The case involves a Prenuptial Agreement signed in 1988, which was enforced by a Maryland court more than twenty years later at the time of the parties' divorce. In that case, one party challenged the Prenuptial Agreement based on the allegations there was not full financial disclosure, the agreement was presented too close to the date of the marriage, there was no opportunity to consult with counsel, and it was unconscionable (one-sided). The Maryland Court of Special Appeals disagreed with all of these arguments and upheld the Prenuptial Agreement. Stewart v. Stewart builds on a pre-Cannon Maryland case involving enforcement of a Prenuptial Agreement, Martin v. Farber 510 A.2d 608 (1986). In that case, the Maryland Court of Special Appeals also upheld the Prenuptial Agreement, underscoring the high bar required to show that a Prenuptial Agreement in unconscionable in Maryland.
On the other hand, in Michniewicz v. Michniewicz, No. 0266 (Md. App. April 11, 2018), an unreported Maryland Court of Special Appeals case, the Court of Special Appeals affirmed the circuit court invalidating a Prenuptial Agreement due to the court finding that there was not full, frank, and truthful disclosure of the extent of assets of one party and the party challenging the Prenuptial Agreement had limited English reading and writing capabilities at the time she signed the document (which was written only in English).
Prenuptial Agreements in Maryland should be in writing and signed by both parties. Prenuptial Agreements can cover as much or as little as the people getting married want to include. Prenuptial Agreements in Maryland can cover an array of topics as long as parties do not contract for anything illegal or against public policy, except that Prenuptial Agreements cannot adversely affect the right of a child to support and generally cannot decide custody of a future child. Prenuptial Agreements in Maryland also may not require the parties to divorce.
Prenuptial Agreements in Maryland must be executed voluntarily. Under contract laws in Maryland, Prenuptial Agreements can be challenged based on coercion, duress, fraud, incompetence, mistake, undue influence, or unconscionability. Full financial disclosure, independent counsel for both parties, and sufficient time to discuss and understand the Prenuptial Agreement before signing, are important factors to consider in protecting a Prenuptial Agreement from challenge. If parties have strong connections to other jurisdictions, such as the District of Columbia, a "choice of law" provision in the Prenuptial Agreement can dictate that the Prenuptial Agreement be interpreted and that enforceability be decided under that jurisdiction's laws, which may add clarity and protection, given Maryland's lack of a statute governing Prenuptial Agreements.
District Family Law strongly recommends all Prenuptial Agreements include full financial disclosure, fundamentally fair terms, and independent legal representation of both parties. District Family Law also recommends Prenuptial Agreements be discussed, negotiated, and signed well in advance of the date of marriage.
It is important for both parties to have independent legal counsel to discuss different options and outcomes and ensure that the Prenuptial Agreement is tailored to the circumstances and goals of each of the parties. It is also important to begin thinking about the Prenuptial Agreement well in advance of the wedding. Not only does this avoid last-minute stress, it also gives both parties space and time to really consider their options and be confident in what they are signing.
Finally, Prenuptial Agreements are for everyone! The cost of consulting a lawyer about a Prenuptial Agreement is money well spent. These conversations up front save much larger amounts of money, time, and hurt down the road!
Under Maryland case law, to enforce a Prenuptial Agreement the proponent must show there was no "overreaching" which can be done through showing there was full, frank, and truthful financial disclosure. Actual adequate knowledge of the finances of the other party can be a substitute for full disclosure, though generally the clarity of full disclosure is preferable. Maryland courts have routinely emphasized the importance of each party knowing what they are waiving when they enter a Prenuptial Agreement.
Additionally, under Maryland contract law, a Prenuptial Agreement cannot be unconscionable, which means "extreme unfairness" as evidenced by one party's lack of meaningful choice and contractual terms that unreasonably favor the other party. Maryland case law also emphasizes that it is important for both parties to have the opportunity to consult with their own lawyer (even if they do not take advantage of that opportunity) and neither party should be discouraged in any way from doing so.
The leading Maryland Supreme Court (formerly the Maryland Court of Appeals) case regarding Prenuptial Agreements is Cannon v. Cannon, 865 A.2d 563 (Md. 2005). Cannon emphasized that a confidential relationship exists between parties contemplating marriage and entering Prenuptial Agreements. In Cannon the Maryland Supreme Court held that Prenuptial Agreements should be evaluated to determine whether there is "overreaching, that is, whether in the atmosphere and environment of the confidential relationship there was unfairness or inequity in the result of the agreement or procurement." The Maryland Supreme Court in Cannon explained that where there is full, frank, and truthful financial disclosure, there can be no overreaching and the attacking party can then only rely on other common law contract defenses (e.g. fraud, duress, coercion, mistake, undue influence, or incompetence) to attack the Prenuptial Agreement. For this reason, full financial disclosure is arguably the most important aspect of a Prenuptial Agreement in Maryland.
A subsequent important case in Maryland regarding Prenuptial Agreements is Stewart v. Stewart 76 A.3d 1221 (Md. App. 2013). The case involves a Prenuptial Agreement signed in 1988, which was enforced by a Maryland court more than twenty years later at the time of the parties' divorce. In that case, one party challenged the Prenuptial Agreement based on the allegations there was not full financial disclosure, the agreement was presented too close to the date of the marriage, there was no opportunity to consult with counsel, and it was unconscionable (one-sided). The Maryland Court of Special Appeals disagreed with all of these arguments and upheld the Prenuptial Agreement. Stewart v. Stewart builds on a pre-Cannon Maryland case involving enforcement of a Prenuptial Agreement, Martin v. Farber 510 A.2d 608 (1986). In that case, the Maryland Court of Special Appeals also upheld the Prenuptial Agreement, underscoring the high bar required to show that a Prenuptial Agreement in unconscionable in Maryland.
On the other hand, in Michniewicz v. Michniewicz, No. 0266 (Md. App. April 11, 2018), an unreported Maryland Court of Special Appeals case, the Court of Special Appeals affirmed the circuit court invalidating a Prenuptial Agreement due to the court finding that there was not full, frank, and truthful disclosure of the extent of assets of one party and the party challenging the Prenuptial Agreement had limited English reading and writing capabilities at the time she signed the document (which was written only in English).
Prenuptial Agreements in Maryland should be in writing and signed by both parties. Prenuptial Agreements can cover as much or as little as the people getting married want to include. Prenuptial Agreements in Maryland can cover an array of topics as long as parties do not contract for anything illegal or against public policy, except that Prenuptial Agreements cannot adversely affect the right of a child to support and generally cannot decide custody of a future child. Prenuptial Agreements in Maryland also may not require the parties to divorce.
Prenuptial Agreements in Maryland must be executed voluntarily. Under contract laws in Maryland, Prenuptial Agreements can be challenged based on coercion, duress, fraud, incompetence, mistake, undue influence, or unconscionability. Full financial disclosure, independent counsel for both parties, and sufficient time to discuss and understand the Prenuptial Agreement before signing, are important factors to consider in protecting a Prenuptial Agreement from challenge. If parties have strong connections to other jurisdictions, such as the District of Columbia, a "choice of law" provision in the Prenuptial Agreement can dictate that the Prenuptial Agreement be interpreted and that enforceability be decided under that jurisdiction's laws, which may add clarity and protection, given Maryland's lack of a statute governing Prenuptial Agreements.
District Family Law strongly recommends all Prenuptial Agreements include full financial disclosure, fundamentally fair terms, and independent legal representation of both parties. District Family Law also recommends Prenuptial Agreements be discussed, negotiated, and signed well in advance of the date of marriage.
It is important for both parties to have independent legal counsel to discuss different options and outcomes and ensure that the Prenuptial Agreement is tailored to the circumstances and goals of each of the parties. It is also important to begin thinking about the Prenuptial Agreement well in advance of the wedding. Not only does this avoid last-minute stress, it also gives both parties space and time to really consider their options and be confident in what they are signing.
Finally, Prenuptial Agreements are for everyone! The cost of consulting a lawyer about a Prenuptial Agreement is money well spent. These conversations up front save much larger amounts of money, time, and hurt down the road!
