Like prenuptial agreements, postnuptial agreements can be used as a legal tool to help couples understand each party’s rights and responsibilities if the marriage were to end in divorce or death. A postnuptial agreement must meet certain criteria to be considered valid. Contact an experienced prenuptial agreement attorney in Mountainside for more information on postnups and marriage contracts.
What is a Postnuptial Agreement?
Most people have heard of a prenuptial agreement, where before tying the knot the couple signs a document outlining what will happen to certain assets in the event of divorce. Unlike a prenup, postnuptial agreements are signed and executed after the marriage has already taken place.
A postnup is a contract between spouses that details how marital assets and liabilities will be divided if the marriage ends. It can address a variety of issues and it is designed to provide clarity for all decisions and avoid future disputes if the marriage were to end. A postnup can include the following.
- Asset division to outline which party will receive which assets if the marriage ends
- Debt division to determine who is responsible for certain liabilities and debts
- Alimony to state whether spousal support will be needed, who will pay, how much, and for how long
Why Are Postnups Important?
Postnuptial agreements can be beneficial in a variety of ways. A prenup may not have been necessary before marriage but life throws curveballs at us all the time and circumstances can change at the drop of a hat. Postnups are important to allow couples to address financial issues that they may not have considered before getting married.
If one spouse’s financial situation drastically changes after marriage, a postnup can help address how new assets or debts will be handled in the future if the couple gets a divorce. They may also be necessary if one spouse owns a business or acquires significant assets. They may wish to utilize the postnup to protect their new assets. It can also be important to outline how inheritance or gifts will be treated in the event of a divorce.
Although postnuptial agreements are often created in times of stress or change, creating a contract in advance can help prevent conflicts if the marriage does come to an end.
What Makes a Postnuptial Agreement Valid?
For a postnuptial agreement to be considered valid, several elements must be present. Consider the following.
- Both parties must enter the agreement voluntarily and without coercion or duress.
- There must be full disclosure of each spouse’s financial situation including assets, debts, income, and other relevant financial information.
- Generally, both parties must be represented by independent legal representatives.
- The terms of the agreement must be fair and reasonable for both parties.
Only if all of the above conditions are met is the postnup considered valid and legally enforceable. Postnuptial agreements are generally scrutinized more closely than prenuptial agreements because of the relationship that the couple has already established. Work with an experienced attorney for more information and legal advice.
