5 Reasons to Sign a Postnuptial Agreement 

 Posted on March 30, 2023 in Family Law

Most people have heard of prenuptial agreements, but fewer are familiar with postnuptial agreements. Postnuptial agreements are similar to prenuptial agreements in that they provide a formal legal document that outlines how two spouses will handle their finances and other related matters during divorce. The difference between the two is that prenuptial agreements are signed before the marriage, while postnuptial agreements are signed after the couple has already been married. Postnuptial agreements can be incredibly helpful for couples facing uncertain financial futures or other issues. Here are five situations in which a postnuptial agreement may be beneficial.

Either Spouse Experiences a Financial Windfall or Loss

When one of the spouses suddenly experiences a financial windfall, such as an inheritance or lottery winnings, or suffers a major loss, such as the bankruptcy of a business venture they once owned, signing a postnuptial agreement can help protect both partners’ assets and financial future.

A Spouse Has Children from a Previous Marriage

If one of the partners has children from a previous marriage, signing a postnuptial agreement can help ensure that these heirs maintain their inheritance rights in the event of a divorce. For example, if there are special heirlooms or items of sentimental value that the parents wish to remain in the hands of their children, a postnuptial agreement can help ensure this.

Either Spouse Has Significant Debts

Debts are very common these days, and it is not unusual for one spouse to have significant debt before getting married. If this is the case, a postnuptial agreement can help protect the other spouse from having to take responsibility for any of their partner’s debts.

The Couple is Considering Divorce

A postnuptial agreement can be a great way for couples to start conversations about the possibility of divorce and put legal protections in place. Writing a postnuptial agreement can help both partners come to an agreement about how their assets and debts should be handled in the event of a divorce, which can make the process much simpler and less stressful if the marriage does end. If the marriage remains intact, no harm comes from creating a postnuptial agreement and the agreement can still be used for estate planning purposes.

The Spouses Wanted to Sign a Prenuptial Agreement but Never Got Around to It

If the couple wished to sign a prenuptial agreement but never got around to it, a postnuptial agreement can be a great way to achieve similar goals. It is important for couples who choose this route to make sure that they have an experienced legal professional assisting them, as there are certain state-specific laws that need to be taken into account.

Contact our Kane County Divorce Lawyer

Our St. Charles divorce attorneys can help you understand the implications of signing a postnuptial agreement and provide legal advice on how best to protect your financial future. Contact us today to learn more. Call Goostree Law Group at 630-584-4800 for a free consultation.

Source:

https://money.usnews.com/money/personal-finance/family-finance/articles/what-is-a-postnuptial-agreement