How to Know When You Need a Postnuptial Agreement

 Posted on May 21, 2020 in Postnuptial Agreements

Couples have the option of creating a prenuptial agreement before they get married, but some never act on it. There could be several reasons for this, such as:

• Believing it is unnecessary given their level of personal assets
• Feeling uncomfortable with the idea of preparing for a hypothetical divorce
• Simply not thinking about getting a prenup or knowing what it is

Now that you have married, you still have the opportunity to create a postnuptial agreement. Like a prenuptial agreement, a postnuptial agreement can decide how you will divide your marital properties, define which properties are separate, and determine whether one of you will owe spousal maintenance to the other. If you did not feel a need to create a prenuptial agreement, you may ask why you would want to create a postnuptial agreement. There are several financial factors that could cause you to change your mind on creating an agreement:

1. You Have Started or Grown a Business: Many couples begin their marriages owning few valuable assets. Starting a successful business or practice means that you now own valuable property. Businesses that are created or see growth during a marriage are considered marital property. During a divorce, your spouse would have a right to an equitable share of your business. With a postnuptial agreement, you can state that you would keep complete control of the business in the event of a divorce.
2. You Stopped Working During Your Marriage: It is common for a spouse to take time off from work in order to raise children. Even if you did not leave your job, you may have reduced your hours or passed up opportunities for career advancement, which makes you more reliant on your spouse’s income. You would be entitled to spousal maintenance if you divorced, and it may be easier to negotiate the maintenance amount now in a postnuptial agreement than during a divorce.
3. You Received an Inheritance: People can suddenly come into possession of valuable properties, such as when they receive an inheritance from a family member. Inheritances are not marital properties when they are gifts meant for one person. However, the longer you possess the inheritance, the more likely it is that it will mingle with your marital properties. A postnuptial agreement can define which properties make up your inheritance.

Contact a Naperville, Illinois, Family Law Lawyer

Creating a postnuptial agreement does not have to be an awkward experience. At Calabrese Associates, P.C., we work with many couples who have decided to make a prenuptial or postnuptial agreement for practical reasons. To schedule a consultation with a DuPage County family law attorney, call 630-393-3111.

Source:

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