The need for a postnuptial agreement may arise during a marriage for any number of reasons.
Prenuptial agreements are usually preferable. However, if a couple failed to create a marital contract prior to officially tying the knot, a postnuptial agreement is an option.
What are the requirements?
Colorado law states that any postnuptial agreement must be in writing and signed voluntarily by both parties. Each spouse must provide disclosures of income, assets and debts. The contract must not contain any unreasonable terms or violate state or federal law. In addition, the parties should each have sufficient time to review the conditions.
What should the agreement include?
Financial matters are the most common considerations included in a postnuptial agreement. Issues like the division of assets and debt, as well as alimony, are usually the focus. If a couple chooses to include provisions regarding spousal support, a court will review these terms for fairness in the event of a divorce.
When is a postnuptial agreement necessary?
A change in circumstances may spark either spouse’s interest in obtaining a postnuptial agreement. An increase in finances like a family inheritance or significant raise could create the conditions for such an arrangement. Irresponsible handling of money, such as gambling, may also make a postnuptial contract a good idea. The reasons are often similar to those leading to a prenup. Establishing financial security and clearly-defined wishes are among the top concerns.
There are terms and conditions that would render a postnuptial agreement invalid, so speaking with knowledgeable legal counsel is highly recommended for couples that are considering this option.
