Post-Nuptial Agreements

Post-nuptial agreements are entered into after marriage.

A post-nuptial agreement is similar to a prenuptial agreement in many ways, but is entered into at a different time and for different reasons. These agreements are used to ease tension and uncertainty in a marriage during stressful times and have been known to save couples from divorce.

Definition

A post-nuptial agreement is an agreement between spouses that protects their individual assets in the event of divorce or death. Much like a prenuptial agreement, it assures that assets remain the property of the original owner at the end of the marriage, rather than split 50-50, as would be the case otherwise. A post-nuptial agreement, however, is entered into after the couple marries.

Reasons

A post-nuptial agreement is normally arranged following a period of severe marital strain or significant financial change. Whatever the reason for making the agreement, however, it must be clear that the couple wishes to stay married. The couple should agree on why they are entering into the agreement and it should be fair for both.

Significance

Post-nuptial agreements are typically held to a higher standard of fairness concerning financial issues than prenuptial agreements and therefore are more difficult to arrange and enforce. Laws vary by state, but are for the most part as hard or harder on post-nuptial agreements than they are on pre-nuptial agreements. The reason for this is to ensure that the agreements ease uncertainty in a marriage, rather than secure a financial advantage for one party.

Considerations

To provide the best chances of making a post-nuptial agreement stick, the partners should be represented by their own attorneys in the forming of the agreement, all income and assets must be disclosed, both parties should provide a written and signed statement explaining their reasons for entering into the agreement, and the agreement should provide something of value from both parties.

Misconceptions

The post-nuptial agreement once was seemingly reserved only for marriages on the verge of collapsing. Today, they are viewed as a means to save marriages that are wrought with uncertainty. They assure that both parties will be able to live comfortably in the event of a separation. Some parents urge their children to get them to protect their inheritance.

References

• Find Law: Postmarital Agreements
• Find Law: Making Your Post-Nuptial Agreement Enforcable
• Financial Advisor: Postnups Gaining in Popularity