It may be difficult and traumatic to enter into a Postnuptial Agreement. Here you may learn about the legal requirements and how to list different assets.
What you will discover:
When a couple marries, they legally become a unit and agree to share their lives and possessions. When a couple divorces, their combined assets may be subject to an equitable distribution based on their state’s marital property rules. Couples use a Prenuptial Agreement to agree on how their money and possessions will be handled and shared before they marry. If a couple does not enter into a prenuptial agreement, they may still enter into a Postnuptial Agreement after they marry. There are several variances between the two. The following are some important factors to consider while drafting a Postnuptial Agreement.
When a couple files for divorce, asset splitting is a difficult and time-consuming procedure. A Prenuptial or Postnuptial Agreement might help married couples avoid this stressful experience. These agreements specify who receives what in the case of divorce, but they may also specify how separate property is managed throughout the marriage.
Here are three things to think about if you want to keep your assets separate throughout your marriage:
A Postnuptial Agreement enables you and your spouse to specify and agree on the assets you each want to keep if your marriage dissolves. It may also clearly identify which assets are independent property.
Yes. The courts uphold the majority of Postnuptial Agreements. They are typically deemed legitimate and enforceable if the following conditions are met:
A Postnuptial Agreement often has the same terms as a Prenuptial Agreement. The agreement you sign after marriage has many clauses that promote divorce results. Asset division is often controversial. Including the following may assist to make asset split and divorce easier:
Marital assets: The agreement divides marital assets accumulated during the marriage, such as investments, company assets, bank account balances, real estate, automobiles, and other assets.
Separate property clause: This clause permits either partner to maintain the assets obtained before to the marriage. It also classifies assets acquired by one spouse during the marriage as personal property that may not be divided at divorce.
Spousal support: If one spouse quits his or her job to be a stay-at-home parent or to pursue school for improved job chances, the clause specifies how much spousal support the spouse will get during and after the marriage.
Child support: While this agreement does not supersede state law, it may make the transfer easier. This clause may also address child support from a prior marriage and child support in the event of divorce.
What may and cannot be contained in a Postnuptial Agreement is governed by state law. Some conditions may be unenforceable. Most states will not accept the following clauses in a postnuptial agreement:
It is dependent on the precise conditions, as with most legal agreements. A sunset provision, which dissolves the agreement after a certain amount of time, might be included by a couple. In some cases, asset split may initially benefit the wealthier spouse. If the couple divorces after the Postnuptial Agreement expires, the agreement will no longer apply, and assets will be split in accordance with state law.
Without an expiration date, the longevity of a Postnuptial Agreement is determined by the marriage. However, if a couple fails to follow through on their agreement throughout the marriage, such as by combining their separate and joint property, then elements of the agreement may be voided. As a consequence, distinct assets may become common assets and be open to split.
