What Are Marital Agreements?
Nuptial agreements, such as prenups and postnups, are marital contracts. Marital agreements are meant to handle complex family law legal matters such as asset division, alimony payments, and more if a marriage ever results in a divorce. These marital contracts must be written and considered carefully to be enforceable in a family law court.
Both spouses must freely enter into prenuptial and postnuptial agreements, the two parties must fully understand the implications of the agreements, and a family law judge must deem the contract terms fair to both parties, considering the circumstances.
These legal documents are very flexible and can meet the unique needs of every married couple, sometimes contending with issues related to real estate property, pensions, investments, business ownership, and more. To ensure that your marital contract is legally enforceable in a court of law, we strongly advise you to retain the professional legal counsel of experienced family law lawyers who can assist you in drafting and executing your prenuptial or postnuptial agreement.
What Are the Differences Between Prenuptial and Postnuptial Agreements?
Although prenuptial and postnuptial agreements serve many of the same purposes, they differ in key ways.
A prenuptial agreement is a contract between two adults intending or contemplating marriage. The terms of the prenuptial agreement are likely to apply in the event of divorce proceedings or the early death of one party involved in the agreement. What may be included in prenuptial agreements can vary from state to state. Your prenuptial agreement addresses concerns about asset division, spousal support, and other similar matters.
A postnuptial agreement works similarly to a prenuptial agreement; however, it must be made between two married spouses at some point after their marriage. While both prenuptial and postnuptial agreements can handle legal matters related to divorce cases, they are meant to establish the terms for how things should unfold in the event of a divorce. Still, they cannot be crafted in anticipation of a divorce.
Are Postnuptial Agreements Growing in Popularity?
Not long ago, prenups and postnups were viewed negatively by most individuals as there was a belief that these marital contracts showed a lack of faith in marriage, devalued the romanticism of being a married couple, and for other reasons as well. However, in recent years, both prenuptial and postnuptial agreements have been steadily growing in popularity across the United States of America.
There are several reasons for the increasing popularity of postnuptial agreements, including the following:
- A change in societal norms wherein married couples are now more open to discussing financial matters as equals and planning for the future together
- Another common reason for an increase in postnuptial agreements relates to estate planning. Specific estate planning measures can be effective, particularly for second marriages and parents looking out for the children of both spouses
- Divorce rates are high, with almost 50% of all marriages now ending in divorce. With the increase in separations, younger married couples understand the importance of planning for the unforeseen and the unknown that awaits their marriages
- Some individuals and married couples pursue opportunities in entrepreneurship or business ownership, which come with complex financial scenarios, particularly in the event of a divorce
- The economy is unstable, and financial crises can affect families, necessitating the need to protect assets and plan for the unexpected
- There is an increase in dual-income households and blended families, creating more complex financial situations for married couples and necessitating the need for clear agreements on the future
Another reason married couples may create more postnuptial agreements is that the old belief that these marital contracts weakened relationships has largely beenoverturned. Married couples now better understand that these agreements can provide both spouses with additional security, financial transparency, and peace of mind. Having a clear idea of how the future will unfold if a divorce happens may result in fewer conflicts within the family unit about finances and expectations.
Why Should You Consider Creating a Postnuptial Agreement?
Considering the benefits of a postnuptial agreement is not a sign of failure in your marriage, or an indication that you are concerned it will one day end. In many instances, married couples turn to postnuptial agreements to strengthen their relationships, reduce uncertainty, and clarify their expectations for the future.
Some of the reasons you may consider creating a postnup include the following:
- If you have children from a previous marriage and you want to ensure that your wealth is passed along to a child and a blended family, a postnuptial agreement can help ensure that assets and financial accounts are distributed as you intend
- Estate planning, retirement planning, and other long-term financial goals can be impacted by a divorce case, making a postnuptial agreement valuable for providing clarity
- In situations where one spouse carries a large amount of debt into the marriage, a postnuptial agreement can help clarify who is responsible for paying off that debt
- Postnuptial agreements can be used to help reconcile a couple after marital struggles, such as infidelity
- Significant changes in wealth or income after an inheritance, receiving a large bonus, new employment, or launching or selling a business
To learn more about the many benefits of creating a postnuptial agreement, please get in touch with our Overland Park-based law firm to discuss your questions and concerns with our attorneys.
Contact Us to Schedule an In-Depth Strategy Session with Our Legal Team Today
Postnuptial agreements are popular, and there is no reason to believe that this upward trend in popularity will stop anytime soon. It’s more likely that such marital contracts will continue to increase and eventually carry more weight as couples consider their benefits and turn to lawyers for help creating those documents.
When creating a family law document such as a prenuptial or postnuptial agreement, it is imperative that you carefully consider all the implications of the contract under the advisement of experienced legal counsel. Failure to meet the state’s requirements could lead to your postnup being deemed unenforceable in the courts. Our legal team would be proud to assist you in creating a postnuptial agreement that stands up to scrutiny and meets all your needs.
To learn more about the benefits of retaining our legal services, please get in touch with our law office to schedule your initial consultation today. You can reach us at 913-514-0909.
