Everyone is familiar with prenuptial agreements, which are agreements made between two people before marrying that establishes rights to property and support in the event of divorce or death.
Many think of this concept as unromantic, as it acknowledges the possible end of a marriage before it even begins. However, prenuptial agreements are becoming more and more common as millennials are getting married later in life and therefore have more assets coming into the marriage.
A concept you may not be familiar with is a postnuptial agreement. It’s the same concept as a prenuptial agreement only the parties enter into this agreement after being married.
Reasons To Get A Postnuptial Agreement
There are many reasons to address property division and spousal support after entering into a marriage.
For example, you may not realize it before, but after marriage you could find that your spouse spends money more frivolously than you or makes extravagant purchases.
Another reason you may find, is that your own financial circumstances have changed, making you more vulnerable to a lower quality of life if you were to get divorced.
Below are some of the top reasons Marler Law Partners suggest a couple seek a postnuptial agreement.
One Or Both Spouses Entered The Marriage With A Significant Amount Of Financial Assets
As mentioned above, with people getting married later in life, it is possible both are entering into the marriage with their own property and significant financial assets to protect.
You Have Children From A Previous Marriage
Having a blended family is more than enough of a reason to get a postnuptial agreement. If the birth parent were to die, they want to assure that their assets can be passed onto their children; not just their current spouse.
You Own A Profitable Business
Any new assets or large profits gained during the course of the marriage could be considered joint property, depending on how your business is set up. If you already own a business or are considering starting one, a postnuptial agreement is a safe way to ensure that you remain the sole owner of business assets and profits. On the flip side, any business debts incurred would also be yours.
You Hated The Idea Of A Prenup
Many people don’t want to discuss the possible end of a marriage before the big day. Having this discussion after the wedding can make it less stressful and be a practical way to ensure that any potential divorce would be less contentious.
You Recently Received A Large Inheritance
Once married, new assets become joint assets. Consider any future inheritance from family members and reach an agreement with your spouse on if you want that property to be shared or to remain solely under the spouse with the inheritance’s ownership.
In The Case Of Mr. And Mrs. Smith
If you read our blog later this month, we will talk about the long-time separated, but not officially divorced couple of Mr. and Mrs. Smith.
During their decades-long separation, both had acquired new property, one spouse had started a business, and both of their income situations had changed.
At the time of their separation, the Smiths didn’t move forward with a divorce because of the high cost. This caused problems when they eventually did file for divorce.
However, a lower cost solution to protect them both when they finally did decide to file for divorce would’ve been arranging a postnuptial agreement.
That way, during the 20 years they were separated, they could rest easy knowing the property they acquired in that time would remain under their ownership if/when they decided to formalize the divorce.
It’s never too late to consider a postnuptial agreement. Call the trusted family law attorneys at Marler Law Partners today to learn more about starting the postnuptial agreement process.