What is a Postnuptial Agreement?
Postnuptial agreements are similar to prenuptial agreements in that they specify the division of assets and liabilities in a legally binding contract in the event of a divorce, separation, or death of a spouse. However, unlike a prenup, postnuptial agreements are signed after the wedding, in some instances even years later. Some clients may find the idea of broaching the subject of a nuptial agreement more comfortable after the wedding, rather than before.
Unlike a prenup, postnuptial agreements are signed after the wedding, in some instances even years later.
A postnuptial agreement (often called a postnup) can address all the marital assets or just the treatment of a single asset. They can also be used to change the financial agreements of a prenuptial contract. As married couples bear a fiduciary duty to care for one another, postnuptial agreements tend to be scrutinized more than prenups. Therefore, it is important to hire the legal counsel of an experienced attorney to draft a postnuptial agreement.
Benefits of Postnuptial Agreements
The thought of a postnuptial agreement may be uncomfortable to some, but it is often a sound decision that can safeguard your financial future in the case of a divorce. Couples may enter into a postnuptial agreement under various circumstances.
One of the most common reasons is a change in the dynamics of a marriage when one of the spouses commits marital misconduct. For example, if you worried about infidelity, a postnup can spell out the consequences of unfaithfulness. Or, if a partner wants to prove that he or she wants to work on the marriage, then it may be arranged in a postnup to transfer an asset to the other partner, which then would not count as a marital asset in case the couple gets divorced later.
A postnup may also be considered if the two partners desire clarity on financial information or spending habits. A formal division of assets allows each spouse to spend as they wish, without affecting the other partner. This provision is especially relevant if either or both parties have children from prior relationships, and are financially supporting them.
A postnup may be required when a new business is founded, and the other partners in the company demand that the agreement ensures that a claim on the business cannot be made if the couple in question divorces in the future. Or, the elder members of a wealthy family may stipulate that their adult children need to protect themselves with a postnup before being named as beneficiaries of the family's wealth and assets.
Requirements of a Postnuptial Agreement
A postnuptial agreement is a contract between spouses and needs to be in writing. There should be full disclosure of all assets, and there should be separate attorneys representing the spouses.
Contact Us to Seek Legal Counsel
Jeffrey Goldblatt is an experienced divorce lawyer who is skilled at drafting postnuptial agreements that can help both spouses reach a reasonable agreement. Contact us today to schedule your consultation with Mr. Goldblatt.