A postnuptial agreement, created after getting married, can provide clarity and security for both parties. While similar to a prenuptial agreement, postnups often address financial and personal changes and other matters that have arisen during the marriage.
Here are some common reasons couples choose to establish a postnuptial agreement.
Financial protection
A primary reason for a postnup is to protect individual assets, such as property acquired before or during the marriage, inheritances and business interests. A postnup outlines each spouse’s financial rights and responsibilities, reducing potential disputes in the event of a divorce.
Changes in circumstances
Life is unpredictable, and circumstances can change after marriage. A postnup can address changes like a substantial income increase or one spouse leaving the workforce to raise children. The terms of a postnup help to ensure that both parties are fairly treated during marriage and if they divorce.
Resolving marital issues
Often, a postnuptial agreement can help resolve marital issues and strengthen the relationship. When conflicts over finances or other matters arise, the agreement can provide a framework for addressing concerns and fostering open communication.
Debt management
A postnup can also address the division of debt. If one spouse accumulates significant debt during the marriage, the postnup can specify how the debt is handled in the event of a divorce. It can protect the other spouse from being unfairly burdened with debt they did not incur.
Preparing for a possible divorce
A postnup can also lay the groundwork for a potential divorce by clearly outlining the division of assets, spousal support and other financial matters. It can help reduce conflicts and minimize legal complications if the marriage ends. As with a prenup, both parties to a postnup should have their own legal guidance to help ensure that the agreement is fair.