Premarital Agreements and Marital Settlement Agreements are both contracts that govern how property will be divided and debts paid in the event of a separation or divorce. In many respects the difference between each type of agreement is timing. Premarital Agreements are contracts that are entered into prior to marriage. Marital Settlement Agreements are contracts that are entered into when a couple separates or divorces. Both types of agreements require full and fair disclosure of both parties’ assets and debts.

Premarital Agreements

Premarital Agreements allow the couple to pre-plan for what will happen to the couple’s property and debts should they divorce ​​ at some later time. Premarital Agreements can be limited or be more inclusive. The Agreement may address property and debts that the couple had at the time before they are married or property accumulated after the marriage, future support, inheritance that each may receive after marriage, and divisions of a spouse’s estate in the event of death. If the parties do not sign a premarital agreement or if their premarital agreement only covers certain types of property or situations, then once married, the couple’s decisions about their financial situation and financial future are subject to the divorce law.