When getting married, couples often consider how their assets and liabilities will be impacted. For some, one spouse may have outstanding debt, and they want to protect the other spouse from being held responsible. This is where a premarital agreement (PMA) comes in handy.
What is a Premarital Agreement (PMA)?
A PMA is a legal contract between two people who are getting married. It outlines how their assets and liabilities will be divided in the event of a divorce or death. The PMA can include provisions to protect one spouse from the other’s debt, such as IRS debt. It is important to note that PMAs must be entered into voluntarily, without coercion, and must be fair and reasonable.
Confirming the Premarital Agreement with a Post-Marital Agreement
Once a PMA has been executed, it is a good idea to confirm it with a post-marital agreement. This agreement confirms the provisions of the PMA and further solidifies the agreement between the parties. It is important to note that post-marital agreements must also be entered into voluntarily, without coercion, and must be fair and reasonable.
Partition and Exchange Agreement (PEA)
In the event that disputes arise between the parties, a partition and exchange agreement (PEA) may be drafted to partition the separate property identified in the PMA and further partition existing community property. The PEA may also state that no community estate will exist going forward. It is important to note that PEAs must also be entered into voluntarily, without coercion, and must be fair and reasonable.
Enforcing PMAs, Post-Marital Agreements, and PEAs
In the event of a divorce, PMAs, post-marital agreements, and PEAs can be enforceable if they are entered into voluntarily, without coercion, and are fair and reasonable. If a dispute arises as to the validity of any of these agreements, the court will consider evidence such as the parties’ testimony and any expert testimony to determine the validity of the agreement.
In conclusion, premartial agreements, post-martial agreements, and partition and exchange agreements can be valuable tools for couples who want to protect one spouse from the other’s debt. It is important to ensure that these agreements are entered into voluntarily, without coercion, and are fair and reasonable to increase the likelihood that they will be enforced in the event of a divorce or dispute.
If you have any questions about premartial agreements, post-martial agreements, or partition and exchange agreements, or if you need assistance with a divorce, please contact the team at The Blacknall Firm.
