What Is A Postnuptial Agreement?

postnuptial agreementYou’ve probably heard of a prenuptial agreement, in which the two parties entering into marriage sign a contract detailing what belongs to whom, and what is owed to each party in the event of a separation or divorce. Most people prefer to sign such a contract before the wedding to give them peace of mind before they legally merge their lives together.

But just because you didn’t sign a prenuptial agreement, doesn’t mean your financial situation is set in stone. Much like a prenuptial agreement, a postnuptial agreement can help provide peace of mind to one or both parties – the main difference being that it’s drawn up and signed after, rather than before, the wedding.

How Do You Know if You Need A Postnuptial Agreement?

There are a few reasons you and/or your spouse might want a postnuptial agreement. Most of the time they are used to protect one spouse’s marital property interests in the event the other spouse is embarking on a business venture that will entail a significant amount of risk. On the other hand, if one spouse suddenly came into a large inheritance, they may want to protect that asset in the event of a divorce, in which case a postnuptial agreement can provide that assurance.

Other times the couple may have wanted a prenup, but never got around to signing one before the wedding. In a time where more and more couples are comprised of spouses who both work outside the home, fewer people feel like the concept of communal property makes sense for their circumstances.

Alternatively, if two people get married and only then realize that they have very different ideas about how to handle money, a postnuptial agreement can help to save their marriage by defining which assets and properties belongs to which spouse. If you’re having marital problems, and you feel like your finances might be at risk because of it, a postnuptial agreement can allow you to focus on working on your marriage instead of worrying about your financial assets. Many people feel more comfortable working on relationship issues they may not otherwise have given a chance without a postnuptial agreement.

On the other hand, if you’re seriously considering divorce, a postnuptial agreement can save time and money in the divorce process by dividing property and assets ahead of time.

The birth of a child is another common reason people sometimes seek out a postnuptial agreement, especially if one or both of the spouses was previously married to someone else. A postnuptial agreement can clarify the child’s inheritance rights of property and finances from the current marriage and/or one or more previous marriages, if necessary.  However, you cannot pre-negotiate child support.

Previous marriages can also make inheritance tricky if one spouse dies, which is another common reason for seeking out a postnuptial agreement. In that situation, a postnuptial agreement can clarify who owns an asset in the event of a divorce or the death of a spouse.

There are many reasons for wanting a postnuptial agreement. Whether your circumstances have changed, or you just wanted the additional peace of mind a contract can bring, the family law attorneys at Sherer Law Offices are here to help.

The attorneys at Sherer Law Offices have been providing legal representation for real estate cases, criminal cases, and all types of family law for more than 25 years. Our experienced divorce attorneys will take the time to really listen to your unique situation so that they can plan strategies that can best protect your best interests. 

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