Marital agreements, also called “martial contracts,” clearly define financial expectations and responsibilities in relationships. They outline terms for property, assets, and other financial matters, ensuring clarity and protection.
Colorado law recognizes three main types: prenuptial, postnuptial, and cohabitation agreements. Prenuptial agreements are signed before marriage, postnuptial agreements are made after marriage, and cohabitation agreements are for unmarried couples living together.
Here is an overview of the three contracts. This information can help couples choose the right option for their situation.
What Is a Prenuptial Agreement?
A prenuptial agreement, commonly called a "prenup," is a legally binding contract a couple creates before they marry. It establishes how the couple will handle assets, debts, and other financial matters in a divorce or death. Prenuptial agreements allow couples to address finances now, helping prevent conflicts if the worst happens.
For a prenuptial agreement to be valid in Colorado, both parties must fully disclose their finances. Each party must voluntarily sign the agreement in writing, without coercion or duress. The terms also cannot heavily favor one party or be “unconscionable.” An unconscionable agreement would be so strange or imbalanced, it shocks the court.
What Is a Postnuptial Agreement?
A postnuptial agreement is a legal document that couples create and sign after getting married. This agreement specifies how assets, property, debts, and financial responsibilities will be divided in case of divorce or separation.
Couples draft postnuptial agreements for many reasons. They may experience major life changes, like receiving a large inheritance, starting a business, or shifting careers. Such changes often require a reassessment of financial arrangements.
Some couples use these agreements to tackle marital debt or clarify ownership of assets acquired during the marriage. Others create postnuptial agreements to reconcile after marital issues, define financial boundaries, and build stability.
Postnuptial agreements in Colorado are enforceable if they meet specific criteria. Both spouses must fully disclose their finances for validity, and neither spouse can use coercion or unfair pressure. The terms must remain reasonable and avoid giving one party a significant advantage. Like prenuptial agreements, postnuptial agreements must be written and signed voluntarily.
What Is a Cohabitation Agreement?
A cohabitation agreement is a legal contract for unmarried partners who live together. It defines each partner's financial and property rights during the relationship, and it outlines arrangements if they break up. Couples use these agreements to define financial responsibilities, property ownership, and shared assets.
Key elements of a cohabitation agreement typically include:
- Handling debts
- Allocating financial obligations
- Provisions for dividing property
- Terms governing bank accounts, household expenses, and major purchases
- Provisions for inheritances, life insurance benefits, and other long-term financial considerations
Courts enforce cohabitation contracts that meet specific legal requirements. Both partners must honestly disclose their financial circumstances. Also, the agreement cannot involve coercion, deception, or unfair terms.
Key Differences Between the Three
Timing and Applicability
Cohabitation agreements, prenuptial agreements, and postnuptial agreements differ in timing and purpose. Here is a breakdown:
- Married couples use postnuptial agreements after the wedding to handle new financial or personal issues that arise.
- Unmarried couples create cohabitation agreements before living together. These agreements cover their time cohabiting.
- Couples establish prenuptial agreements before marriage, and these contracts take effect once the couple marries. The contracts address future financial or personal matters.
The User
Cohabitation agreements protect unmarried couples by defining their shared and separate financial responsibilities. These agreements safeguard partners who live together without the legal protections of marriage. A co-habitation agreement should also serve as a solid defense against a common law marriage claim. It can serve as a clear statement of intention that the parties do not intend to be married.
Prenuptial agreements help couples planning to marry by defining financial arrangements before the marriage begins.
Postnuptial agreements allow married couples to define or adjust terms related to their relationship.
Legal Distinctions
Colorado law treats these agreements differently based on their purpose and timing. Prenuptial and postnuptial agreements are governed by the Uniform Premarital and Marital Agreements Act (UPMAA). They must follow specific statutory requirements.
For prenups, couples thoroughly disclose financial assets and debts before marriage to ensure reasonable terms. Postnuptial agreements address changes in marital dynamics instead of anticipatory matters.
Cohabitation agreements follow contract law, relying on mutual consent and fair terms. Courts evaluate these contracts less strictly than marital agreements, but they still prioritize fairness and transparency.
Getting Legal Advice
An attorney provides valuable guidance when selecting the most appropriate agreement for your circumstances. Colorado laws and requirements often involve complexities that experienced legal professionals can clarify. Their expertise fosters agreements that align with your goals while maintaining clarity. Attorneys review terms to promote fairness and increase the likelihood of enforceability.
Peek Goldstone can help you and your partner create a marital or cohabitation contract that meets your needs. You can schedule time with our team by contacting us online or calling our office at (970) 352-8611.