Common Reasons Couples Sign Postnuptial Agreements

 Posted on November 29, 2022 in Divorce and Family Law

If you are like most people, you have probably heard of prenuptial agreements but you may be less familiar with postnuptial agreements. Postnuptial agreements are very similar to prenuptial agreements with one major difference: A postnuptial agreement is agreed to after the couple is already married while a prenuptial agreement is signed before the wedding. This blog will discuss some of the common reasons that married couples negotiate postnuptial agreements and the benefits these agreements may provide.

Basics of a Postnuptial Agreement

Similar to prenuptial agreements, postnuptial agreements or "postnups" are legally binding agreements between two parties. The specific terms of a postnuptial agreement vary from case to case. However, many postnuptial agreements are used to define certain assets as non-marital assets, separate marital assets from non-marital assets, protect business interests, and confirm estate planning wishes.

Why Sign a Postnuptial Agreement?

The reasons that couples sign postnuptial agreements are as varied and unique as the individuals in those relationships. Some of the most common reasons married couples sign postnuptial agreements include:

• You experienced a significant increase in wealth. - If you experience a significant increase in wealth after marriage, either through inheritance or business ventures, you may want to consider signing a postnuptial agreement. This agreement can help protect your financial interests in the event of a separation or divorce.

• You are redefining your roles. - If you and your spouse decide to redefine your roles in the relationship, a postnuptial agreement can help define each party's rights and responsibilities. This may be especially important if one spouse decides to stay at home with children instead of working outside the home. You can define the terms of spousal maintenance in your agreement so that the spouse sacrificing his or her career to stay home will have peace of mind knowing financial support will be available if the marriage ends.

• You want to safeguard business interests. - If you or your spouse own a business, signing a postnuptial agreement can help protect the rights of each party and the interests of the business. The agreement can outline who will have management control, who is responsible for any debts or obligations related to the business, and how much each party will receive in the event of a divorce.

• You want to save assets for children from a previous marriage. - If you or your spouse have children from a previous marriage, signing a postnuptial agreement can help ensure certain assets are classified as non-marital property so they can be passed on to the children in the event of divorce or death.

• You or your spouse received a large inheritance. - If you or your spouse received a large inheritance, signing a postnuptial agreement can help ensure that the inheritance remains separate in the event of a divorce.

Contact a Wheaton Postnuptial Agreement Lawyer

Postnuptial agreements can serve many different purposes. If you want to learn more about creating a postnuptial or prenuptial agreement, contact Stock, Carlson & Asso. LLC for help. Call our DuPage County family law attorneys at 630-665-2500 for a confidential consultation.

Source:

https://www.investopedia.com/articles/personal-finance/062915/5-signs-you-need-postnup.asp