What Couples Need to Know About Prenuptial and Postnuptial Agreements
Many couples don’t realize that prenuptial and postnuptial agreements are made by everyday people, not just celebrities.
In fact, discussing legal possibilities both before and after marriage is one way to strengthen understanding between both people, ensuring that both people in the marriage know the financial situation going forward.
Many people may choose to draw up these agreements based on an event, such as the impending marriage, or an impending birth of a child. Having the documentation can offer a form of security for everyone involved.
However, there are many things that you may not know about the processes. There are many things to gain from going through with one or both of these actions. What you need to know about prenuptial and postnuptial agreements are outlined below.
Prenuptial Agreements
Basics. A prenuptial agreement is a legally binding agreement signed between couple before marriage. Basically, it outlines the division of their assets if they were to get divorced or pass away in the future.
By State. Each state has unique laws regarding prenuptial agreements. Often, the laws have to do with where the couple married, where they live and what laws the agreement call into play. It is common for couples to seek out the state which would provide the most beneficial laws for the prenuptial agreement in their own case.
Most States. While not always the case, the majority of prenuptial agreements have similar attributes. The agreement must be fair, both parties must fully disclose assets and each party needs their own attorney.
Premarital Assets. Often, prenuptial agreements state that any assets brought into the marriage will remain that person’s sole property. Different agreements have different rules about the assets earned or bought after a marriage.
Divorce. When couples get divorced, they may seek alimony --- perhaps with the help of someone like a spousal support attorney to make sure they get awarded what they need. Usually, prenuptial agreements either waive alimony or do not address it. If alimony is waived, then a party cannot seek alimony in the event of a divorce.
Passing Away. Another element of prenuptial agreements deals with what happens to assets if one partner passes away. For instance, it may outline whose properties are willed to or provide further provisions for the surviving spouse.
Children. Prenuptial agreements have nothing to do with child support or any rights related to children of the couple. Couples cannot bargain for or against the rights of their children.
Postnuptial Agreements
Of course, there are many reasons why a couple may not have filed a prenuptial agreement. Perhaps the wedding was rushed, or they didn’t feel a need for it at the time. Luckily, if this is the case, postnuptial agreements are still a potential option.
As the name implies, postnuptial agreements work very similarly to prenuptial agreements, only after the wedding takes place.
However, despite similarities, there are a few things you should know about postnuptial agreements:
Timing. For many, a postnuptial agreement comes at a certain time. Perhaps it is following a wedding or when a significant life event has occurred. Often, those who sign postnuptial agreements have had a change of mindset regarding how they’d like to document division of assets between themselves. For example, the birth of children, the buying of properties, or a significant salary raise are all reasons people might seek out postnuptial agreements.
Assets. Speaking of assets, one of the main life-changes a couple can go through is acquiring certain assets. For example, a postnuptial agreement may not have been needed in the beginning of a couple’s life together when they had few assets, but as owned properties, cars, bank account savings, etc. grow, then a postnuptial agreement may be needed. Also, having a postnuptial agreement makes any separation proceedings much faster and more painless if things were decided on already in the past.
Is a Prenuptial or Postnuptial Agreement Right for You?
Prenuptial agreements are generally a good idea for people who are getting married, re-married or have considerable assets which need to be accounted for safely.
According to a Forbes article, “money and communication are typically two out of the top three reasons people get divorced.” A prenuptial agreement can help in this regard. The agreement helps open up honest communication regarding money and assets and also allows each side to feel protected within their marriage.
In order to get a prenuptial agreement processed, it is important that you find an experienced lawyer who specializes in prenuptial agreement law. You don’t want a general practice lawyer to handle your family affairs. Find a specialist and be content knowing your prenuptial decisions are in good hands.
If you’re already married, then perhaps a postnuptial agreement would be the way to go. It’s all about what suits your partnership and financial plan the best. Deciding to sign a prenuptial or postnuptial agreement is an important one, but also one well-worth the investment.
About The Author
Liz S. Coyle is the Director of Client Services for JacksonWhite Attorneys at Law. She also serves as a paralegal for the Family Law Department. She is responsible for internal and external communications for the firm.