Postnuptial agreements are legally enforceable contracts signed after a couple gets married. They sometimes cover the same grounds as a prenup, or premarital agreement, signed before a wedding. But it typically delves more into various problems and concerns.
You should carefully examine the pros and downsides. Consult a family law attorney to ensure your postnuptial agreement holds up in court.
When Should You Consider Getting a Postnup?
A postnuptial agreement is a wise, preventative measure that may ease divorce concerns. It’s particularly true for couples with significant financial holdings or businesses.
Some couples sign postnuptial agreements to prevent money disputes. In troubled marriages, they are signed to clarify property ownership.
Postnuptial agreements should include all assets and be drafted. Prenup lawyers, financial advisors, real estate attorneys, and estate planners can be a part of this process. Couples may want to draft a postnuptial agreement:
- Fill in for a formal prenuptial agreement when there’s no time for one to be drawn up.
- Separation of Assets: Create or Maintain (businesses, real estate, etc.).
- Avoid divorce by working out marital issues.
- Take the time to consult an expert before making any important financial choices.
- Join your income after you are married.
Postnuptial Agreements: Why You Need a Lawyer
Postnuptial agreements are not as well-known as prenups. Unlike prenuptial agreements, postnuptial agreements are made after marriage. Just like you should have your own prenup lawyer if you want to sign a prenuptial agreement, the same goes with postnups as well. While drafting a prenup is a joint process, you should still have a family law attorney look out for your best interests.
Postnuptial agreements safeguard spouses’ rights and assets in the event of divorce or death.
Postnuptial agreements are difficult to enforce due to rigorous rules. Courts sometimes invalidate postnuptial agreements because they may have been compelled. Thus, society frowns on postnuptial arrangements.
If they meet specific standards, postnuptial agreements are legally binding in divorce. Postnuptial agreements are frequently drafted and evaluated under the supervision of a family law attorney.
This document summarizes financial difficulties and rights in a mutually agreed-upon divorce. The family divorce lawyer may represent one party in a postnuptial agreement lawsuit.
Pros of Post-nuptial Agreements
1. It Helps Keep Your Finances Secure
A well-drafted postnuptial agreement may safeguard the financial interests of both parties. It may prevent claims against each spouse’s property, divide marital assets, and establish alimony.
2. Altering the Nature of Property
Postnuptial agreements let spouses select which assets are theirs. An upfront agreement may prevent misunderstandings and future conflicts. During the marriage, one partner may inherit, contribute, or receive property.
3. Verbal Compromise Confirmation in Marriage
Divorce makes it hard to implement oral agreements made between spouses. Postnuptial agreements let married spouses legally bind their verbal promises.
4. Providing Extra Reassurance
Postnuptial agreements provide divorcing couples with greater assurance and authority than default statutory requirements. Instead of a stack of accounting expenses and uncertainty about who gets what after a divorce, the parties will have a secure plan.
A judge will split the property in a divorce without a postnuptial agreement. With a documented deal, establishing asset ownership may be more efficient.
Cons of a Postnuptial Agreement
1. Conflicting Opinions
Disagreement over the postnuptial agreement might delay or even enrage the parties. Divorce may occur due to these factors when it otherwise would not.
2. Disparate Bargaining Power
It might be challenging to reach an agreement when one partner is the primary earner or has much more assets than the other. Because of this, the other partner’s rights may be threatened or even trampled upon.
3. Recognition and Enforcement
The court overseeing a divorce will review a postnuptial arrangement. The court may change or eliminate terms if the agreement is unjust.
Reasons a Postnuptial Agreement Is Something to Think About
1. No One Needs More Premarital Stress
There’s a lot to accomplish in the run-up to the wedding, from inviting guests to planning the ceremony and celebration. Even though it’s a happy day, planning a wedding can be quite stressful. Prenuptial agreement preparation with your partner and a family lawyer attorney looks odd and sad.
Due to stress and hectic schedules, many individuals postpone prenuptial agreements until it’s too late. Postnuptial agreements make divorce and separation negotiations easier.
2. You Own a Company
A business is one of the most sensitive and unequal assets to split during a divorce. One family member must buy out the other, or the enterprise will be divided. The division may be complex as you and your partner founded the firm.
If one spouse brings an existing company into the marriage without developing it, this gap may feel unfair. To protect their investments, business owners may form a postnuptial agreement. Both partners stand to gain from the company even if they do not split up.
3. You and Your Partner Will Be More Prepared
Waiting till you are married will assist you in understanding each other’s future goals. Divorce may reveal how you will work together, what’s most important to you, and if you’re willing to compromise.
4. The First Marriage Brought Children for You
People who tie the knot later in life may have been married before and already have kids. Experienced couples know that divorces without prenups or postnups may be acrimonious.
Postnups could distribute income after divorce or death if one had children from a prior marriage. Even if you and your new partner don’t want babies, you should ensure that your children from the previous relationship are taken care of.
5. Considerable Changes Have Occurred in Your Financial Predicament
You may have started a firm that is making more money than you expected. Or your current investment is performing better than expected. If you are married, you may worry about securing your property, car collection, boat, or inheritance.
One of you may have marital debts or student loans that the other would prefer not to pay. A postnuptial agreement will handle post-marriage money worries.
6. An Inheritance Has Been Left to You
Bystanders may find it difficult when a non-divorcing couple divides their possessions. However, letting this bias give your spouse half of a large gift for which you are responsible is foolish.
Postnuptial agreements may protect inheritances received during the marriage.
Where Does a Postnuptial Agreement Fail to Make Sense?
Like any legal contract, postnuptial agreements should be carefully considered before being signed. There are a few factors to consider before signing a postnuptial agreement.
- Postnuptial agreements may not protect lower-earning spouses in divorce or separation. Heterosexual couples with significant income differences should weigh the pros and cons before signing a postnup.
- When one side has not had adequate time to properly review the agreement before signing. Postnuptial agreements protect and limit rights; therefore, both parties must read them. Before signing, read the document and ask questions. A claim of ignorance is unlikely to prohibit a postnuptial agreement.
The Bottom Line
If you didn’t sign a prenup, you might want to now. When any couple has significant premarital assets or children, postnuptial agreements safeguard everyone.
Postnuptial agreements help couples avoid the high costs and tensions of divorce litigation. A postnup may help prevent legal conflicts over an individual’s estate after death, should the marriage last till the end of both parties’ lives.
Once the divorce terms are set in stone, you and your partner will have little space for disagreement about who gets what. Creating a postnuptial agreement may be (relatively) easy with the help of a reliable family law attorney.
