You may have heard of a prenuptial agreement, a contract couples sign before marriage to protect assets in the case of a divorce, often used in situations where one partner has considerably more wealth than the other. Couples on equal financial footing or who have few assets may also sign a prenuptial agreement.
What you may not realize is that you can also get one after marriage. When you do, it is called a postnuptial agreement. There are certain situations where it may be beneficial to obtain one.
You want to ensure your children receive certain heirlooms or assets
This especially applies to blended families, where you or your spouse bear children after the union or come into it with children from prior relationships. A postnuptial allows you to make sure that in a divorce, certain property or assets stay safe for them. An example would be if a relative dies and leaves behind an antique and you want only your older children to inherit it.
You start a business
Businesses started during a marriage generally end up as shared marital assets subject to division in a divorce because even if the spouse does not contribute funds or labor directly to them, they contribute indirectly by contributing to the household. A postnuptial allows you to ensure you retain sole control of your business if you get a divorce.
You decide one of you will become a stay-at-home parent
Stay-at-home parents sacrifice a great deal, including, in many situations, the ability to save up funds of their own and have careers. In a divorce, they often find themselves without many assets and with a work history gap and outdated skills that make getting a job difficult. Setting up a postnuptial agreement to make sure the stay-at-home parent receives certain funds in a divorce can be a condition of becoming one.
According to Gitnux, prenuptial agreements have risen in popularity in the past couple of decades. Postnuptial agreements, though possibly harder to enforce in courts, are basically prenuptial agreements after marriage and offer similar benefits. Rather than being unromantic, they are precautions to preserve your and your children’s future.
