Most people are aware of prenuptial agreements that allow couples to address varying issues concerning inheritance and property rights, and other financial obligations before getting married. But what about those who did not get a prenup?
Couples who did not sign a prenuptial agreement for any reason before exchanging the marital vows can consult David R. Phillips for a marital contract that can be drafted even after a marriage has been legally recognized.
Known as a postnuptial agreement, family law attorneys recommended drafting them from scratch to regulate critical aspects of marital finances. Or these contracts can be crafted to adjust provisions of pre-existing prenups as well.
The Primary Differences between Prenups and Postnups
Prenuptial agreements are completed before marriage, whereas postnuptial agreements happen after the couple has gotten into a civil union or matrimony. Both cover similar potential issues and situations, helping avoid conflicts about how everything will be divided in the unfortunate event of a divorce.
In some states, prenups require each spouse to have a separate attorney from their significant other. Meanwhile, it is common for the married couple to hire one family law attorney to craft a postnup agreement together. However, postnups sometimes come under more intense scrutiny if the court has questions regarding everything in the agreement being in the best interests of both parties.
Benefits of Postnuptial Agreements
#1- Asset Protection
If any or both parties have children from a previous relationship, they can use a postnuptial agreement to ensure certain assets go to their beneficiaries only. Moreover, if a spouse receives more finances from a family inheritance or a substantial promotion, they can protect the additional income without being liable to share it with their spouse.
#2- Simplify Debt Liabilities
Debt is one of the major leading causes of stress and issues for both partners in a marriage. Postnups can alleviate the stress by outlining who is responsible for paying off the debts. It can be under a single name or in both names, so the distinction helps clarify several potential financial obligations. It can also include how the debt will be paid and whether there is a particular repayment schedule for it.
#3- Planning for the Future
Postnuptial agreements prove beneficial for establishing what is important for both partners and solidifying financial plans, such as saving up to buy a home, setting money aside for children's education, retirement plans, and so on.
Both spouses must also agree regarding what needs to be done in the event of one spouse's death or serious illness. The agreement can comprise the protections in place for the children and the other spouse if one dies or becomes ill.
Power of attorney, health insurance, estate planning, life insurance, updated wills, and many other aspects can be brought up when drafting a postnuptial agreement.
The document helps define both separate and shared financial goals and puts important boundaries in place. It successfully helps avoid conflict when dealing with financial issues later on while also safeguarding for an unknown future.
#4- Protection from a Messy Divorce
Many people mistakenly believe that postnups are only prepared for divorces or eventual death. It is a misconception because one of the main benefits of postnuptial agreements is that they help avoid nasty conflicts over finances during a divorce.
They fairly regulate the issues faced by most couples when negotiating the terms of their divorce. Discussing the agreement in good times helps each spouse know how the assets will be divided if they file for a divorce in the future. This spares both parties a lot of unnecessary trauma and conflict.
Need a Postnup? Reach Out!
If you are all geared up to simplify legal and financial complexities that create stress in marriages, our experienced family law attorney is here to support you every step of the way.
David R. Phillips can help you define the expectations and needs to create a postnup that reflects the interests of both spouses in a marriage. We treat all clients with the utmost discretion and dignity, especially when dealing with delicate family law concerns.
Please contact us at 219-929-7060 to set up an appointment with our family law attorney!