If you and your spouse recently tied the knot, you might wonder what you can do to protect your assets as you begin to embark on this journey together. A common way newly married couples do this is through postnuptial agreements.
Understanding the basics of this legal document will help you determine if this is a choice you want to make for your marriage with your new spouse.
How do postnuptial and prenuptial agreements differ?
More people are familiar with prenuptial agreements which are documents that outline expectations of how the couple will handle finances during the marriage and in the event of a death or divorce. The main difference is that couples execute postnuptial agreements after marriage rather than before.
What are some benefits of postnuptial agreements?
Working together with your spouse to draft this document can help form a cooperative and communicative relationship between the two of you. The agreement will provide clarity about marriage expectations, protect you from incurring the debt of your spouse and ensure you receive alimony in the event of divorce.
What do postnuptial agreements include?
In addition to financial responsibilities, a postnuptial agreement outlines other details and privileges that are relevant to your marriage. These terms may include:
- How to manage your family business
- How to divide your property in the event of separation or divorce
- Whether to include spousal support in a divorce settlement
- Distribution of assets and funds to children from another marriage
- Estate plan details such as the creation of a will and trust
- Who will control and manage property in the marriage
Overall, should your marriage end in separation or divorce, a postnuptial agreement will allow you to quicken the divorce process and minimize court fees and stress.