When couples enter a marriage, they enter with trust and the assumption that their union will last. Unfortunately, not all marriages are destined to stand the test of time, often leading to divorce.
That’s why it may be wise for couples to consider a postnuptial agreement to protect themselves and their belongings and prevent future issues should one decide to dissolve the marriage down the road.
What is a postnuptial agreement, and what does it do?
A postnuptial agreement is an essential and often overlooked legal document that couples can use to establish how they wish to handle their assets and liabilities in case of a divorce or death. In essence, it allows the couple to enter into a financial contract while they are already married.
The key to creating a successful postnuptial agreement is to plan ahead and ensure that each partner understands their rights and obligations, with financial and non-financial matters addressed. It’s important to ensure both parties are candid about their finances from the start, as this will reduce any potential issues that may arise later on.
It should include provisions that address each party’s rights, property and home ownership should the marriage end. Additionally, other considerations should go into a postnuptial agreement, such as alimony, inheritance and beneficiaries of life insurance policies.
Even if one spouse has substantially more financial resources than the other, it’s still important for both spouses to make sure their needs are addressed before signing a postnuptial agreement.
Postnuptial agreements are not just for rich celebrities or couples who have already had serious problems in their marriage. This type of agreement can benefit any couple who wants to protect themselves, their assets, and their future. If you are considering a postnuptial agreement, consult with a legal representative who can help you decide if this is the right decision for you and your spouse.