A postnuptial agreement functions much like a prenuptial agreement, except spouses compose postnups after tying the knot. Postnuptial agreements are not for every couple, but they can address important issues in a marriage involving money. If divorce is heading your way, you may have already taken care of some money concerns in your postnup.
There are many possible issues you can address with a postnuptial document. As U.S. News and World Report explains, you may make financial provisions for yourself, your spouse and even your children in your postnup.
Provide for a spouse
In a two income couple, each spouse has a way to earn a living or at least earn enough that a divorce would not be financially ruinous. But if you want to stay home and raise the children, it could leave you in a situation where you have little money to your name because you were not earning money, plus you may lack the job skills that well-paying jobs require.
If you were to end your marriage under these circumstances, you could end up in a destitute state. Recognizing this fact, you and your spouse may write a postnup that provides you with enough of an asset share that you won’t face poverty following a divorce.
Address spousal debts
Many marriages end because one spouse was irresponsible with money. If you or your spouse struggle with spending problems, a postnup may be of assistance. Spouses who rack up debts sometimes absolve their spouse of any responsibility to pay off their debt through a postnuptial agreement. Doing this may even preserve the marriage from divorce.
Preserve an inheritance
You or your spouse might have children from a prior marriage. If so, you may face a situation where you die but your assets do not go to your children. They may pass to your spouse or even to the children of your spouse. A postnuptial agreement may clarify what you want your children to inherit upon your death.
These are just some examples of what a postnuptial agreement can do. Be careful that you do not put anything in the agreement that could invalidate it. Courts will be on the lookout for any provision that might seem unfair to you or your spouse.