We may have heard about prenuptial agreements but haven’t come across a postnuptial agreement. They are quite similar and postnuptial agreements are becoming more and more popular.
In this article, we will discuss everything about a postnuptial agreement and what it entails.
What is a Postnuptial Agreement?
A postnuptial agreement is created to specify the disposition of assets, including personal property, real estate owned by the government, retirement funds, investments, and debts. This happens when a marriage ends, whether through death or divorce.
After getting married, a postnuptial agreement serves as a safety net for couples so that they can both safeguard themselves in the event of a common law separation.
A couple may be realistic about the possibility of divorce and want to have a better understanding of what that process would entail for them. In this case, postnuptial agreements are the best option.
What Makes Up a Postnuptial Agreement?
State laws vary greatly in terms of what is recognized and honoured in postnuptial agreements. It is best to hire a good lawyer to draft an agreement for you.
However, the following are some things to consider including in your contract:
- Asset division: Prior to marriage, each partner might have had investments and possessions from prior relationships.
- Marital debts: A couple may acquire debts while married, just as they may obtain assets. Married couples may want to specify how they will split these debts in the event of a divorce.
- Spousal support should be in the agreement if both parties agree that one of them deserves it. This frequently occurs when one partner quits their career to care for the family at home.
- Child support/care: If the couple has children together, they may insert a clause in the postnuptial agreement that addresses child support and custody.
- Asset distribution when a partner dies: A postnuptial agreement may also state what to do with the assets if one of the parties dies while married.
Must You Involve an Attorney in a Postnuptial Agreement?
Even though you draft the postnuptial agreement yourself, it is vital to have postnuptial agreement lawyers check it for you. There are many postnuptial agreement lawyers so it is in your best interest to get one for yourself to avoid certain mistakes.
Furthermore, because a postnuptial agreement is signed under law, you will do well to hire a professional lawyer to aid in the process.
Reasons to Consider a Postnuptial Agreement
There are a variety of reasons you might want to think about a postnuptial agreement if you get married without one in place. Some popular reasons for postnuptial agreements include:
- More preparation: Some couples merely desire some explanation regarding their potential future circumstances, should things not turn out as they had hoped. Many people believe a postnuptial agreement is a form of security for the future.
- Children’s asset protection: If either party to the marriage has children from prior partnerships, they may want to ensure that their children receive specific assets. An after-marriage contract could cover this.
- Asset protection for oneself: One partner can experience a significant financial boost as a result of a significant promotion or something similar. They might wish to safeguard it so they won’t have to split their additional income with their partner in the event of a divorce.
- Financial irresponsibility: A spouse may go through financial or legal difficulties during a marriage that they wish to ensure don’t damage them in the case of a divorce.
- Spousal support: In a marriage, one partner may end up providing support for the other for example, when one parent decides to stay at home to care for their children. The spouses may initially seek to reach an understanding of spousal support if they split up.
What Makes a Postnuptial Agreement Valid?
A postnuptial agreement must meet certain requirements to be legally enforceable, just like any other contract:
- A written postnuptial agreement is required. The agreement must have been fully read by both parties before their consenting signatures.
- The deal must be equitable to both sides. An agreement that is extremely unjust to one spouse in the marriage and unconscionable will not be upheld.
- Only factual and comprehensive material may be included in the postnuptial contract. The Agreement shall contain only true and complete information. Additionally, nothing should be withheld; otherwise, the agreement can be declared invalid.
- Accurate execution of a postnuptial agreement is required. The standards for completing a legal document vary by state.
If at any stage you find yourself confused, you can reach out to postnuptial agreements lawyers for a consultation. You can also find a postnuptial agreement sample on the internet for free.
Different Types of Postnuptial Agreements
There are three different types of postnuptial agreements although they are related in a way.
- A strategy for allocating assets and paying spousal support. This is the most typical kind of postnuptial contract that outlines how a couple’s assets and debts would be split in the case of a divorce.
- When one party passes away, a procedure by which the parties might decide to forgo spousal rights. It states how the couple’s property and other assets would be distributed.
- A postnuptial agreement template that can be utilized later as a separation agreement. These agreements discuss the splitting of the couple’s assets and obligations, as well as custody of the child or children, child support, and spousal support.
When to Enter into a Postnuptial Agreement?
A postnuptial agreement does not necessarily indicate that a couple is considering divorce when it is signed. Here are a few typical justifications for creating a postnuptial contract:
- To define each party’s wishes for the property they brought into their marriage
- For protecting children’s inheritances
- To build financial responsibility
- To protect oneself from future financial uncertainty
- To provide the needed financial resources in case of a divorce
Conclusion
Postnuptial agreements between married couples are rapidly growing and this is because most couples find themselves in difficult financial situations.
Every couple has a different financial struggle and it will be best if you and your spouse opt for a postnuptial agreement especially if you believe there is a possibility of divorce in future.
