What Is a Postnuptial Agreement?

What Is a Postnuptial Agreement?

Many people enter marriage with the intention of it lasting a lifetime. However, with the Centers for Disease Control and Prevention reporting that 43% of first marriages end in divorce, it’s essential to take steps to protect your financial well-being. While prenuptial agreements are becoming increasingly common, many wonder if it’s too late to safeguard their assets once they’re already married. The answer is no—you still have options. Iafrate & Salassa P.C. aims to shed light on the lesser-known postnuptial agreement, explaining what it is, its legality, the benefits it offers, and why you should seriously consider obtaining one.

Defining Postnuptial Agreements

A postnuptial agreement is a legally binding contract created by spouses after they marry to outline the division of financial assets in case of a divorce. It can also cover other issues such as spousal support, debt division, and even child custody and visitation matters. Unlike prenuptial agreements, which are signed before marriage, postnups address similar concerns but are executed once the couple is married. This type of agreement can be particularly useful for couples who have experienced significant financial or personal changes since getting married.

The Legal Basis of Postnuptial Agreements

Many people question the legality and enforceability of postnuptial agreements, often worrying that these documents might not hold up in court. The reality is that postnuptial agreements are completely legal and enforceable, provided they are executed correctly. When creating a postnup, it is crucial to ensure that it is:

• Written: Oral agreements are not considered valid in court, so both parties must sign a written document.
• Voluntary: Both spouses must enter the agreement without coercion or pressure from the other party.
• Notarized: To ensure validity, postnuptial agreements should be notarized and witnessed by two individuals who are not party to the contract.
• Fair and reasonable: Postnups that are one-sided or excessively favor one spouse over the other may be deemed unfair and unenforceable.

If a postnup is not created with these criteria, it may not hold up in court. Therefore, working with an experienced and reputable attorney is crucial when drafting a postnuptial agreement.

Why You Should Consider Obtaining a Postnuptial Agreement

One of the primary reasons to consider a postnuptial agreement is the acquisition of significant wealth or assets after marriage. Whether through inheritance, business success, or an unexpected windfall, a postnup can ensure these assets are appropriately allocated and protected. Additionally, if one spouse purchases property or acquires substantial investments, codifying these assets in a postnup can prevent future disputes.

Beyond financial considerations, having a postnuptial agreement provides peace of mind by delineating asset division in the event of a divorce, thereby reducing stress and potential conflict during an already challenging time.

Plus, creating a postnup can strengthen the marital relationship, as it necessitates open communication and transparency between spouses. By addressing financial concerns upfront, couples can focus more on nurturing their relationship and enjoying their shared life together.

Protect Your Assets and Peace of Mind Now

While prenuptial agreements may be the more well-known option, postnups offer similar benefits and can be just as effective in protecting your financial future. Whether you are looking to safeguard current assets or plan for unforeseen changes, a postnuptial agreement can provide both spouses peace of mind and security. Contact Iafrate & Salassa, P.C. today to learn more about how we can help you create a personalized postnup that meets your unique needs and protects your interests. Remember, it’s never too late to secure your financial well-being.