Couples may have missed the opportunity of entering a prenuptial agreement before their marriage. But their need to address ownership of financial assets in a divorce and responsibilities for their children may still persist. Spouses can still enter a contract after they married to deal with these and other matters.
Postnuptial agreement contents
A postnuptial agreement is a contract that spouses enter after they marry that governs issues such as divorce property division, their children, alimony and assignment of business ownership. Postnuptial agreements can also address distribution of assets if a spouse dies.
A postnup may protect one spouse’s receipt of inheritance and assure that it is not divided as marital property. It can help assure that there is additional support or more generous property division for a parent who stayed at home to raise their children.
Bank accounts and retirement assets are comparably easy to value and divide in a divorce. But a business may be more difficult to valuate and divide. A postnuptial agreement can set forth methods on placing a value and dividing it. These agreements may also reassure business partners on business continuity if there is a divorce.
Postnuptial agreements can also prevent some awkwardness in a divorce when addressing repayment of a large loan from parents, such as a down payment on a house. This agreement provides assurances that parents will receive reimbursement.
Spouses can also agree to waive spousal support, for example, in return for more generous property division. These agreements may protect the rights of children from an earlier relationship by helping assure they receive their share of an inheritance or child support.
Exclusions
A postnuptial agreement may not address child custody and child support. It cannot government routine aspects of marriage. Courts may invalidate Unreasonable terms.
Process
A postnuptial agreement is a contract that undergoes negotiation. This can even occur years after marriage.
Spouses cannot enter these agreements under duress. Each spouse should have their own attorney to assure that the agreements are reasonable and that their rights are protected.