3 Reasons Why You May Want to Create a Postnuptial Agreement

 Posted on January 17, 2022 in Family Law

Most people are familiar with the concept of a prenuptial agreement, or prenup. These types of agreements are signed by couples before getting married, and they may address issues related to the ownership of property and decide how certain matters will be handled if the marriage ends in divorce. What some people may not realize is that a couple can also create a similar type of agreement after they are already married. These agreements are known as postnuptial agreements, or postnups. By understanding the situations where a postnup may be beneficial, a couple can determine whether creating this type of agreement will be a good idea.

Situations Where Postnuptial Agreements Can Provide Protections for Spouses

A postnuptial agreement can address certain types of financial or property-related issues, detailing how these matters will be addressed if a couple chooses to end their marriage and pursue a divorce or legal separation. Spouses may decide how their marital property will be divided, or whether one spouse will pay spousal maintenance (a.k.a. alimony or spousal support) to the other. Some reasons why it may be a good idea to make these decisions ahead of time through a postnup include:

• A spouse plans to start a business - Ownership of a family business is often one of the most complex issues to address during the divorce process. If one spouse is a business owner, they may want to make sure their business will be protected from dissolution during divorce, and they can use a postnuptial agreement to ensure that they will be the sole owner of the business. A postnup may also provide the non-business-owner spouse with financial protections, such as by ensuring that the marital home or other assets will not be placed at risk if the business experiences financial difficulties.

• A spouse will be a stay-at-home parent - A couple may agree that it would be best for their children if one spouse provides full-time childcare rather than working outside the home. However, the stay-at-home parent may worry about their financial prospects in the case of divorce, and they may be concerned about their ability to support themselves if they have limited work experience. A postnup may provide a stay-at-home parent with protection by ensuring that they will receive certain assets, or that the other spouse will pay spousal support, if the couple’s marriage ends.

• A couple wishes to reconcile following marital difficulties - When spouses experience relationship issues, they may want to do whatever they can to save their marriage. In these cases, a postnuptial agreement may provide the spouses with reassurances as they work to repair their relationship. For example, if infidelity has been an issue in the past, spouses may use a postnup to detail how divorce-related issues will be addressed if one party commits adultery in the future. By ensuring that both spouses understand what will happen if their attempts to reconcile fail, a postnup may provide them with the incentive to act in good faith as they work to repair their marriage.

Contact Our Oak Park Postnuptial Agreement Lawyer

At Law Office of Vincent C. Machroli, P.C., we can advise you on whether a postnuptial agreement may benefit you, and we can work with you to negotiate the terms of an agreement and ensure that your postnup will provide you with the protections you need. Contact our Hillside family law attorney today at 708-449-7404 to arrange a free consultation and learn more about your legal options.

Sources:

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

https://money.usnews.com/money/personal-finance/family-finance/articles/what-is-a-postnuptial-agreement