Bringing up the idea of a postnuptial agreement with a spouse can be a delicate matter. Some spouses feel that making a postnup signifies a lack of faith in the marriage. Still, some couples find that postnuptial agreements actually strengthen their unions, particularly when it comes to addressing their financial situations.
A postnuptial agreement is basically a prenuptial agreement composed and signed after the marriage. Some spouses fail to make a prenup but later decide their marriage could benefit from a postnuptial contract. According to U.S. News and World Report, a postnuptial agreement may help spouses with the following financial situations.
Money is often the center of many divorce battles. The fact that one or both spouses have a lot of personal wealth can be enough to motivate them to sign a prenup. Still, even if high earning spouses have missed out on a prenuptial agreement, it is still possible, perhaps even crucial, to create a postnuptial accord to address what will happen to their wealth.
Some couples marry while earning a modest living, only for one of the spouses to inherit a lot of money. For the moment, the inheritance may remain separate property. However, the spouse may someday mix some of those funds in with a marital account. A postnuptial agreement could clarify that an inheritance remains separate property and ineligible for property division.
A postnuptial agreement can also reassure a spouse who could face a hard financial life after a divorce. A wife or a husband may stay home and raise the children. Doing so can give up earning years and prevent the at-home spouse from putting money away. A couple could make a postnuptial contract that provides enough of a post-divorce share for the at-home spouse that he or she will not face poverty.
Some spouses struggle with bad spending habits such as racking up big credit card bills or acquiring gambling debts. A high spending spouse may recognize that his or her habits are endangering the marriage and suggest making a postnuptial agreement to keep the other spouse from incurring the other’s debts. Doing so may lessen marital stress and head off a possible divorce.
