Prenuptial and Marital Agreement
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Prenuptial and Marital Agreement
A prenuptial or marital agreement is a legal tool that allows spouses or persons who have applied for marriage registration to define property rules in family relations in advance. It helps avoid uncertainty regarding real estate, business assets, income, debts, family expenses and use of property.
When property rules in marriage should be agreed in advance
For many couples, a marital agreement is not a sign of mistrust. It is a way to discuss financial matters honestly, protect personal property, manage business-related risks and reduce the likelihood of future conflicts.
VINCO’S attorneys help prepare an individual marital agreement, review its terms, coordinate the parties’ positions, prepare the text for notarization and represent clients in disputes concerning amendment, termination or invalidation of the agreement.
What a marital agreement means
A marital agreement is a written and notarized agreement regulating property relations between spouses and may also define their property rights and obligations as parents.
It may be concluded before the marriage registration or during the marriage. If concluded before marriage, it becomes effective on the day of marriage registration. If concluded by spouses, it becomes effective on the day of notarization.
A marital agreement does not replace the marriage certificate and does not regulate feelings, personal relations or non-property parenting matters. Its main function is to establish clear property rules.
When a marital agreement may be appropriate
A marital agreement is particularly useful when the parties have real estate, business assets, corporate rights, loans, a significant income difference, property acquired before marriage or plans to acquire valuable assets in the future.
It may also be helpful if one spouse carries out business activities, has financial obligations, invests in a business, receives income from different sources or wishes to protect property from possible disputes in case of divorce.
A marital agreement may also be relevant for couples living abroad, owning assets in different countries, planning to purchase real estate, take out a mortgage or use family funds for business projects.
What can be regulated in a marital agreement
- the legal regime of property acquired before or during marriage;
- which property is the personal private property of each spouse;
- which property is considered joint marital property;
- the procedure for using housing, real estate, vehicles and other property;
- the participation of each spouse in family expenses;
- the regime of income from business, corporate rights, dividends or investments;
- repayment of loans and other financial obligations between spouses;
- property rights and obligations of spouses as parents;
- maintenance of one spouse in specific circumstances;
- rules for using property after divorce;
- the term of the agreement or certain provisions after termination of marriage.
What cannot be included in a marital agreement
- provisions regulating personal non-property relations between spouses;
- provisions regulating personal non-property relations between parents and children;
- provisions reducing the rights of a child;
- terms placing one spouse in an extremely unfavorable financial position;
- transfer of ownership of real estate or other property subject to state registration;
- terms that effectively deprive one spouse of the right to judicial protection;
- provisions contrary to mandatory rules of family, civil or other legislation.
Main stages of work with VINCO’S
- initial consultation and identification of the purpose of the marital agreement;
- analysis of property, income, business, loans, family expenses and potential risks;
- determination of the issues to be covered by the agreement;
- preparation of an individual agreement structure;
- approval of key terms with the client;
- preparation of the final text for notarization;
- legal support during coordination of terms with the other party;
- communication with the notary if required;
- support with amendment, termination or court challenge of the marital agreement.
Notarization and effective date
A marital agreement must be concluded in writing and notarized. Without notarization, the agreement does not create proper legal consequences.
Before notarization, it is important to check whether all provisions comply with family law, do not violate the rights of a child and do not place one spouse in an extremely unfavorable financial position.
VINCO’S prepares the agreement so that it can be used for notarization without unnecessary revisions and helps the client coordinate complex provisions on property, business, debts and expenses.
Amendment, termination and invalidation of the agreement
A marital agreement may include the procedure for amending its terms. Unilateral amendment of the terms or unilateral refusal from the agreement is not allowed. Amendments are usually made by a separate notarized agreement.
If a dispute arises, certain provisions or the entire agreement may become subject to court review. Such disputes often concern unfair terms, pressure during signing, violation of child rights, unfair property distribution or inaccurate wording.
VINCO’S attorneys support both the preparation of a safe agreement and court disputes concerning its amendment, termination, performance or invalidation.
Marital agreement and business
For entrepreneurs, company owners, LLC participants, investors and persons holding corporate rights, a marital agreement may be an important tool for protecting business interests.
The agreement may define the regime of income from business activities, corporate rights, dividends, investments, business shares, property acquired through business income and compensation mechanisms between spouses.
Such provisions must be drafted carefully because a marital agreement must not replace corporate rights transfer agreements, violate third-party rights or create risks for state registration of property rights.
Risks of a template marital agreement
A generic or template marital agreement often fails to reflect the actual structure of property, business, loans, income, real estate and family expenses. As a result, some provisions may not work or may become disputed.
The most common risks include inaccurate description of property, attempts to transfer real estate through the marital agreement, terms that worsen one spouse’s position, unclear rules for repayment of loans, absence of business-related provisions, disregard of a child’s interests or inconsistency between the agreement and the parties’ actual conduct.
A proper marital agreement must be personalized. It should match the client’s real family and property situation rather than merely repeat general legal provisions.
Documents that may be required from the client
- passports and tax identification numbers of the parties;
- marriage certificate or information about the application for marriage registration;
- information about real estate, vehicles, corporate rights, business and other significant assets;
- title documents for property if required;
- information about loans, mortgages, debts, guarantees or other obligations;
- information about sources of income, business assets, dividends or investments;
- existing arrangements between the parties regarding property, expenses, housing or maintenance;
- previous draft agreements or terms proposed by the other party;
- documents regarding children or property obligations as parents, if such terms are planned.
How VINCO’S can help
VINCO’S Legal Company helps prepare a marital agreement that not only formally complies with the law but also effectively protects the client’s interests.
We analyze the property situation, business assets, real estate, loans, income and potential risks, and then prepare an individual text of the agreement for notarization.
If necessary, VINCO’S attorneys also support negotiations between the parties, prepare amendments to the marital agreement, review an already signed agreement and represent the client in court disputes concerning its performance, amendment, termination or invalidation.
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