Common Reasons Illinois Couples Draft Postnuptial Agreements

 Posted on July 15, 2022 in Family Law

Most people have heard of prenuptial agreements, but fewer have heard of postnuptial agreements. A postnuptial agreement is very similar to a prenup, but it is completed after the couple is already married. Like prenuptial agreements, postnuptial agreements describe the spouses’ property rights and financial obligations in the event of divorce or death of a spouse. The reasons that couples utilize postnuptial agreements are varied and each situation is different. This blog will discuss the most common reasons married couples draft postnuptial agreements and what you can do to get started if you are interested in setting up a postnuptial agreement.

Postnups May Be Used for Financial or Personal Reasons

Postnuptial agreements or “postnups” have become increasingly popular in recent years. More and more couples understand the benefit of establishing their financial rights and responsibilities in an official, legally enforceable document.

Some of the most common reasons couples draft postnuptial agreements include:

• The parties own to protect assets of significant value. In the event of divorce, spouses will either need to reach an agreement about how to divide their marital assets or let the court handle asset division for them. Property division can be complicated, frustrating, time-consuming, and expensive – especially for wealthy couples. Many couples decide to define their property rights using a postnuptial agreement. Some do this in anticipation of divorce, while others use a postnuptial agreement as a safety net. The spouses intend to stay together forever, but understand it is smart to prepare for the possibility of divorce even in a happy marriage.

• A spouse wants to ensure children from a previous marriage receive certain assets. People in their second and third marriages often use postnups to ensure that children from a previous relationship receive certain assets as an inheritance upon their death. For example, a postnuptial agreement may be used to ensure that a family heirloom stays in the family regardless of divorce or death.

• One or both spouses own a business or professional practice. Businesses and professional practices may be considered partially or entirely marital property in a divorce. Business owners often use postnups to categorize business interests as non-marital property.

• One or both spouses receive a large inheritance. Per Illinois law, inheritance is a non-marital asset. However, if property acquired through inheritance is commingled with marital property, it can become a marital asset. Some couples use postnuptial agreements to ensure that inheritance remains a non-marital asset.

• The spouses intended to sign a prenup but never got around to it. One of the most common reasons for signing a postnuptial agreement is because the couple wanted to sign a prenup but did not have time to do so before the wedding.

Contact a Kane County Postnuptial Agreement Lawyer

If you are ready to learn more about the benefits of signing a postnuptial agreement or prenuptial agreement, contact Goostree Law Group. Our St. Charles family law attorneys are here to answer all your questions.

Call 630-584-4800 for a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&ChapterID=59