A postnuptial agreement, also known as a postnup, is a legal contract made between spouses. Couples create it after they are already married. It defines how assets, debts, and other financial matters will be handled if the marriage ends in divorce or separation. Postnups can also address child custody, child support, and spousal support terms.
This agreement provides clarity and security. It is useful for managing significant life changes like a large inheritance, major debts, or changes in career roles.
What sets a postnup apart from a prenup?
Couples sign a prenuptial agreement before marriage. It establishes terms for dividing assets, managing debts, and financial responsibilities during the marriage. In contrast, couples sign a postnup after the wedding. Both agreements aim to protect financial interests and reduce conflicts during a divorce.
Couples with an existing prenup may update it with a postnup to address new financial or personal circumstances. Postnups gained popularity after the rise of no-fault divorce laws in the United States.
Do you need a postnuptial agreement?
Not all couples need a postnup. It is most helpful in situations like:
- One spouse receives a significant inheritance or gift.
- One spouse quits a job to care for children or the home.
- One spouse accumulates significant debt.
- A couple wants to ensure financial security for children from previous relationships.
Creating a valid postnup requires full financial disclosure, fairness, and consent from both spouses. Courts may reject agreements made under pressure, fraud, or with incomplete information. Consider speaking with an experienced family law attorney to determine if a postnup is right for you.
A postnuptial agreement can safeguard your financial future and bring peace of mind. While it may not be necessary for every marriage, it is a valuable tool for couples with complex financial situations.