Couples may choose a postnuptial agreement after marriage due to unforeseen changes, such as a large inheritance or pending business transaction. It can also help with communication and asset organization.
Many couples see a lawyer before the wedding to prepare a contract known as a prenuptial agreement. Others see a lawyer after the wedding for another type of contract, which has a similar purpose, but is known as a postnuptial agreement. There are various reasons for choosing a postnuptial agreement instead of agreeing to a contract beforehand, and sometimes couples engage in both types.
One reason to use a postnuptial agreement may be that circumstances will change drastically shortly after the couple’s wedding. If a large business transaction is pending but won’t be completed until after the wedding vows, it may make more sense to opt for a postnuptial agreement so that the transaction is included in any settlement.
Unforeseen problems can arise even after marriage, such as a spouse receiving a large inheritance. This issue may need to be addressed clearly through a postnuptial agreement, especially if children are involved and the deceased wants the inheritance to revert to those children if the beneficiary divorces. It may also be important to protect the inheritance for the children in the event the beneficiary becomes incapacitated or dies.
While many couples avoid both the prenuptial and postnuptial contracts, especially if they don’t enjoy large amounts of wealth, one or both may be important to consider. In most cases, state laws leave the division of property, assets and debts to a single judge. You may have better protection if you create a detailed legal agreement that both of you can live with.
A post-nuptial agreement can also help bring things out in the open. Instead of wondering or worrying about financial matters, you will be forced to discuss them head-on. This can actually help you and your spouse communicate better, since there won’t be a feeling of holding back. Your spouse may also feel more secure knowing what to expect instead of being disappointed or angry afterward.
Most people don’t really like discussing these things, which is understandable, but it’s important to be open and honest about financial matters, especially when dealing with your spouse. A postnuptial agreement is also a good way to take stock of what each of you owns so you can make sure all of your assets are listed in one place for insurance or other purposes.
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