Straight Talk On Prenuptial And Postnuptial Agreements
A prenuptial or postnuptial agreement is the equivalent of “marriage insurance.” These agreements attempt to help protect your earnings and assets in case your marriage doesn’t work out. When properly negotiated, these agreements benefit both spouses. The only difference between the two is that a prenuptial agreement is created before marriage, and a postnuptial agreement is crafted after you have been married.
Why You Need A Prenuptial Agreement
A prenuptial agreement is not a precursor to divorce. It’s a practical and sensible precaution to take when merging finances, assets and debts. With an agreement in place, you will avoid common pitfalls experienced by couples going through the divorce.
If one spouse comes into a marriage with significant debt, a prenuptial agreement can clarify who will be responsible for paying that debt.
Why You Need A Postnuptial Agreement
After people get married, their finances can change significantly. They may have made more money and have accumulated more assets. This is a big reason why some couples should consider a postnuptial agreement. A postnuptial agreement is useful if:
You didn’t create a prenuptial agreement.
You wish to avoid a contentious child custody battle.
You wish to stipulate to child support or spousal support payment amounts.
You have children from a prior marriage. A postnuptial agreement can specify assets that will go to your children.
You own a business.
You don’t want courts dividing your property and assets for you.