You may have missed your opportunity to draft and sign a prenuptial agreement, but you may still be able to create a postnuptial agreement.
Unlike prenuptial agreements which are drafted before you are married, a postnuptial agreement is a legally binding contract drafted and signed after you and your spouse have legally wed.
These agreements can be created for a variety of reasons, with their main purpose being to outline how each spouse’s assets will be divided in the event of a divorce or death. Like prenuptial agreements, postnuptial agreements often include numerous provisions for each spouse’s financial circumstances.
3 Reasons to Sign a Postnuptial Agreement
Oftentimes, spouses choose to enter into a postnuptial agreement to ensure their financial security in the event of divorce or death. But there are several additional reasons why couples choose to sign postnuptial agreements.
#1: One or both spouses has a substantial amount of assets
Like a prenuptial agreement, a postnuptial agreement can foster open and honest communication regarding each spouse’s finances and protect both parties. One of the reasons spouses sign a postnuptial agreement is if one or both spouses has a substantial amount of pre-marital assets or expects to inherit assets in the future.
This type of agreement helps to ensure that even if the couple divorces, each spouse will exit the union with specific property they wish to protect.
#2: You own a business
These agreements are also a good idea for couples where one or both spouses own a business and wish to make provisions for income and assets earned throughout the lifespan of their marriage. For example, if you own a business and don’t have a pre- or post-nuptial agreement, the other spouse may be able to claim a share of the business or its assets or profits.
#3: Never signed a prenuptial agreement
Unfortunately, many people consider prenuptial agreements to be taboo or a precursor to divorce and proceed down the aisle without one. Later, they wish that they had a conversation about their financial situations prior to the wedding and had signed a prenuptial agreement. Fortunately, they can still sign a postnuptial agreement to achieve many of the same goals.
Should You Draft a Postnuptial Agreement?
Every marriage and financial situation is different. For spouses who did not sign a prenuptial agreement, it can be beneficial to sign a postnuptial agreement. These agreements help clarify and outline the division of finances and assets, should the marriage end through either divorce or death of one spouse.
At Apfelbaum Law, we can help you and your spouse work together to create a postnuptial agreement that outlines and details your unique financial situation and needs. Contact us today to learn more about how we can help you.
