Postnuptial Agreement: How It Works
Every couple dreams of everlasting marriage life. However, several factors make it hard to be a reality. When the signs of a breakup or separation in marriage start to show, couples can agree to ensure their assets are protected. The couple can form a partnership that is recognized by law upon getting married. This partnership is aimed at allowing the couple to share assets and properties. Postnuptial agreement is relevant where the couple has decided to separate ways but still share assets and responsibilities. The divorcing couple enters into a postnuptial agreement to avoid conflicts resulting from the division of assets.
Postnuptial Agreement and Prenuptial Agreement: The Difference
The two agreements are necessary for couples, but the difference comes with the timelines. While the postnuptial agreement is reached and signed after a couple gets married, a prenuptial agreement is reached and signed prior to the union. Most couples prefer prenuptial agreement to postnuptial agreement, and that creates the difference.
Details in postnuptial agreements
Apart from the apparent fact that couples should clearly state what they want, postnuptial agreements should contain other outlined elements. Below are the major elements that must be considered before signing the postnuptial agreements.
Credits and loans help couples sustain and maintain their marriage and family. Every marriage needs a home and or source of income. Taking loans and other financial assistance to buy a home or start a business is essential. However, as time goes by, so do the debts, especially loans with high-interest rates. Before the postnuptial agreement is signed, the couple must discuss how or who will handle the debts.
Asset division is the bottom line and the whole purpose of a postnuptial agreement. It is, however, important for the couple to have terms that will help materialize the division. Remember that a postnuptial agreement is legal, and a third party will be needed. The attorneys from both parties are the third party and should read, understand and interpret the agreement’s terms before it is signed. The terms of asset division should favor both parties and be revised if there is any disagreement.
What if One Party Dies?
This is a relevant question as much as the prospect of it is not pleasant. However, death can happen at any moment and should be acknowledged in the postnuptial agreement. As a couple, you should clearly state and indicate how the assets will be handled if one party dies during the marriage. Considering such cases also helps avoid feuds with other family members who might want a share of the assets.
Reasons to Consider Postnuptial Agreement
Protects your Financial Stability
Both spouses can protect their financial interests when a postnuptial agreement is created and signed. As much as the couple is in a marriage, each spouse’s property is protected from claims and family feuds. In case of separation or divorce, each spouse is able to claim the assets shared and have financial stability.
Protects the Children’s Share of Assets
Almost every marriage brings about children. However, with separation and divorce cases, children are usually left in a state of confusion. If a custody case is filed, the children need to have financial stability despite their side effects. A prenuptial agreement helps save the children by ensuring that they have a share of the assets.
Simplify the Divorce Process
The postnuptial agreement puts a lot of things in order. During the divorce proceedings, there is less argument and disagreement among the couples regarding the division of assets. There is also peace of mind with a postnuptial agreement as uncertainties are mitigated after the signing.
As much as marriage is considered a forever union in many communities, cases of failed marriages and broken families have been witnessed. Thus, it is important to prepare for unexpected situations by creating and signing the prenuptial agreement as a couple. The agreement saves time and ensures the protection of valuable resources in a marriage.