What should you consider when arranging one
A postnuptial agreement is a contract some couples place after marriage to protect individual assets. Here are our recommendations for what you should consider when arranging one.
Who should consider a postnuptial agreement?
These contracts can address many of the same issues that prenuptial and separation agreements address, particularly finances, including what is considered separate property versus what is considered marital property, as well as how assets and debts will be handled in the event of a divorce or death.
When should you consider a postnuptial agreement?
These agreements often arise when the couple has previously separated or considered separating and is in the process of reconciling. Another popular situation occurs when one spouse has recently formed a business and needs to clarify how business assets will be handled.
These types of agreements can deal with a wide range of issues related to property rights as long as the terms are not against public policy. One issue that cannot be addressed in a postnuptial agreement is alimony.
Consult with an attorney before signing a postnuptial agreement
A properly drafted postnuptial agreement is key to a valid, enforceable contract. In addition, before executing a postnuptial agreement, there should be full disclosure between the parties regarding each spouse’s assets and debts.