Postnuptial agreements are signed after divorce to divide assets. Here’s what to know about getting a postnuptial agreement before a divorce.
A postnuptial agreement protects the interests of both spouses in the event of a divorce. Postnuptial agreements allow spouses, instead of a judge, to agree on how to divide their assets and liabilities under a contract. A postnup can significantly expedite the divorce process and lower the cost of divorce proceedings.
When a couple decides to get divorced, the lack of a nuptial agreement between spouses could severely draw out the time and cost of divorce proceedings. The good news is, couples who are already married can draw up a valid marital contract known as a postnuptial agreement.
What is a Postnuptial Agreement?
A postnuptial agreement, also known as a ‘postnup’, is a legal contract between a married couple that outlines the division of assets and liabilities in the event of a divorce. Married couples sign postnuptial agreements in order to expedite the divorce process or to layout terms different from state guidelines regarding the division of marital property. Within a postnuptial agreement, spouses can establish ownership of certain assets during the marriage in order to discern what should be treated as separate property. Postnups can also outline the way spouses divide assets and child custody in the event of a divorce. Although postnuptial agreements can fasten the divorce process, postnuptial agreements can even end up saving a couple’s marriage.
Related: How to Create a Postnuptial Agreement in California
How can a postnuptial agreement expedite the divorce process?
A postnuptial agreement can speed up the divorce process by outlining the division of marital assets and liabilities. Since a postnuptial agreement is a legal document separating the financial life of a married couple, filing an uncontested divorce can be faster and even cheaper.
When is a postnuptial agreement needed?
Postnuptial agreements are primarily useful to protect a spouse’s inheritance, or their financial health if they feel their partner is a financial burden or unfaithful.
In addition, a spouse may seek a postnuptial agreement for:
- Their spouse’s poor financial habits
- Changes in work status or career success
- To protect family inheritances
- Issues of infidelity
What are the benefits of getting a postnuptial agreement?
A common misconception is that postnuptial agreements are only useful for higher-income couples. However, couples may benefit from a postnup regardless of their socio-economic status. In fact, postnuptial agreements can even save a marriage by giving a couple the chance to work out issues that might lead to divorce.
Related: Postnuptial Agreements in California: Is It Right For You?
What can a postnuptial agreement cover?
- Property division
- Spousal support
- Marital debt
- Child custody
- Child support
- Insurance benefits
How are assets and debts divided under a postnuptial agreement?
Depending on the state, the standard division of assets fall under either:
1. Community property
All community property is divided equally between spouses and property proven as separately owned goes to its respective owner.
2. Equitable distribution
Assets and liabilities accumulated during the marriage are divided equitably as determined by the court.
Related: How to Get a Prenup in California: Prenuptial Agreements
When is it too late to get a postnuptial agreement?
Although a prenuptial agreement must be carried out before a couple gets married, there is no deadline for spouses to sign a postnuptial agreement. It is never too late for a married couple to sign a postnuptial agreement. Couples can decide to get a postnup years after they get married.
FAQs
Are postnuptial agreements only useful during a divorce?
No. Postnuptial agreements can save a marriage by establishing boundaries between spouses and motivating healthy behavior.
What is an uncontested divorce?
An uncontested divorce is where both spouses agree to divorce and have settled all divorce-related issues. With a postnuptial agreement, a couple may file for an uncontested divorce and significantly expedite their divorce proceedings.
Is a lawyer needed to prepare a postnuptial agreement?
A lawyer may be needed to file a postnuptial agreement if the relationship between spouses is hostile, or if a large number of financial assets or liabilities are involved.
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If you or a loved one would like to know more about getting a postnuptial agreement before a divorce, get your free consultation with one of our divorce attorneys today.