Marriage is both a legal and emotional union that needs to be secured to avoid arguments and separation. One of the major causes of discontent among families is assets and children. This is why many individuals are opting for a prenuptial agreement before getting into marriage. So, what happens when you don’t have a prenuptial agreement in place? Well, you still have a chance to make things right through a well executed postnuptial agreement.
What is a Postnuptial Agreement?
This is a contract between you and your spouse. The difference between this and a prenuptial agreement is that it is prepared during marriage, while a prenuptial agreement is prepared before your wedding.
Why Is a Postnuptial Agreement Important to Your Marriage?
As you get more and more involved in your marriage, cracks begin to appear. Your once perfect relationship starts becoming challenging and you find yourself embroiled in financial and communication issues. This can cause undue stress to your marriage. Solving these problems will strengthen your marriage.
If you don’t have a prenuptial agreement, this is the right time to define your relationship using an agreement. You can also take this chance to amend a prenuptial agreement you signed before marriage.
You can also use the postnuptial agreement to include some clauses you left out. For instance, if one or both of you have realized a change of financial circumstances, you get to document them.
If you have children from a previous marriage, you might want to allocate funds or assets to them. This is the right time to do so. A postnuptial agreement is also a way to reconcile with your spouse.
Without a prenuptial agreement, you are at the mercy of the state laws when it comes to executing your estate after a divorce or death. The law might not handle the process fairly, which can lead to discontent.
Preparing a Postnuptial Agreement
There are various items you need to include in a postnuptial agreement for it to be deemed complete. These include:
List all you assets, liabilities, and income. List them whether you have bought them individually or as a couple. Next, resolve what will happen to your assets concerning appreciation, income, gains, dividends, rentals, and any proceeds in the event of death or divorce.
You also need to decide how to divide your assets in case of divorce or death. You also decide who will own your home and any second home (if available) in the event something happens that will separate you.
Ongoing Financial Support
Figure out issues to do with alimony, maintenance, and spousal support. You need to consider these within the confines of the limits allowable by the law.
Most states recognize a postnuptial agreement, though there is no Act that controls this agreement. Therefore, the judge will scrutinize the agreement more closely when there is family contention. To get more bargaining power, you need the expert services of a family attorney.