Premarital agreements (aka “prenuptial agreements” or “prenups”) are agreements entered into between two parties prior to their marriage, while marital agreements (aka “postnuptial agreements”) are agreements entered into between married spouses. Under Colorado’s Uniform Premarital and Marital Agreements Act, both premarital and marital agreements are equally valid and enforceable so long as they comply with the law’s required components.

To be valid under Colorado law, a premarital or marital agreement must be in writing and signed by both parties voluntarily and without duress; it must provide a full disclosure of each party’s income, assets, and liabilities; and each party must have been afforded reasonable access to their own legal representation prior to signing the agreement.

When entering a marriage, each spouse will typically bring into the marriage their own separate property. Separate property can easily be commingled during the marriage and considered joint marital property in the event of a later divorce. Even when assets remain titled solely in the name of one spouse during the marriage, the income and appreciation on those assets accrued during the marriage is considered marital property in Colorado.

Under Colorado law, unless the spouses specifically agree otherwise, each spouse keeps their own separate property and divides the joint marital property “equitably” with the other spouse in the event of a divorce. What is “equitable” is determined by the court based on a plethora of statutory factors. In addition, Colorado law instructs whether and what amount of spousal support (or “alimony”) should be awarded from one spouse to the other.

If the parties to an upcoming or current marriage want their asset division or other legal obligations to be different from what Colorado law provides in the event of a divorce, they can enter into a premarital or marital agreement setting forth their desired terms.

A premarital or marital agreement also can be a powerful tool for directing what assets you and your spouse are entitled to and what rights you each may have if one of you dies during the marriage. Under Colorado law, absent an agreement between the spouses directing otherwise, a surviving spouse has a legal right to claim to a statutory percentage of the deceased spouse’s assets upon their death.

Rounds & Bowman assists clients with all aspects of premarital and marital agreements, including drafting the agreement; advising the client regarding their legal rights (during the marriage, upon divorce, and at death) and how the agreement alters these rights; and negotiating the terms of the agreement.