You run a fledgling business, then decide to get married. Five days after marriage, a friend who couldn’t make it to your wedding calls to congratulate you. And during your conversation, this question crops up, “when are you signing your postnuptial agreement.” Not wanting to sound stupid you say: “Postnuptial agreement is already being signed.”
“Great. Don’t want you to end up paying your spouses’ credit card long after a divorce, Buddy,” your friend says.
But this is not true. The postnuptial agreement has not been signed because you and your spouse don’t even know what a postnuptial agreement is, and how the agreement will help you. Don’t fret. You are about to find out all you need to know about the postnuptial agreement, and how it will help you.
What’s the difference between prenuptial and postnuptial agreement?
A prenuptial agreement (also known as an antenuptial agreement) is a written contract entered into by a couple prior to marriage. It allows a couple to select and control many of the legal rights they acquire upon marrying, and what happens when their marriage is dissolved due to death or divorce.
On the other hand, a postnuptial agreement is a written agreement signed after a couple gets married. A postnuptial agreement also outlines a couple’s desires related to property division, alimony, child support, child custody, and visitation in the event of a divorce.
Some benefits of having a postnuptial agreement:
- A postnuptial agreement protects your wealth
If you want to protect your wealth for yourself and your children, then you definitely need a postnuptial agreement. In the event of divorce or death, a postnuptial agreement will keep each spouse’s separate property from future claims, and determine whether one spouse would be responsible for paying the other alimony in the event of a divorce.
- A postnuptial agreement can dictate your business interest
No one enters into a marriage to get divorced, but should this unfortunate event happen; a postnuptial agreement will be there to dictate a number of things. A postnuptial agreement will keep your business separate from your marital property. In the event of a divorce, a postnuptial agreement will ensure your business continues running smoothly.
- A postnuptial agreement protects your assets from debtors
A postnuptial agreement will not only protect your assets in the event of divorce but from debtors as well. If your spouse has a tendency to take loans willy-nilly, thanks to a postnuptial agreement; you won’t be responsible for paying that debt.
- A postnuptial agreement is helpful when the future of your marriage is unstable
There are times when you and your spouse are going through a tough time. You can draft a postnuptial agreement and have it signed just in case you end up splitting.
- A postnuptial agreement allows you to keep your children’s asset safe
In the case of death, you might want to leave your children from your previous marriage some inheritance. A postnuptial agreement can allow you to do this. Remember, many of your assets become marital property the moment you get married. These might include stock options, retirement assets, and real estate. So, a postnuptial agreement enables you to determine how to divide these marital assets.
Lastly, postnuptial agreements differ from state to state in the USA, therefore it is wise to have a law expert guide you.