Prenuptial agreements, or prenups, have long been a “plan B” for engaged couples. They force futur🧸e spouses to negotiate the division of assets, as well as the responsibility for debt they possess, should their marriage take a wrong turn. However, those same questions can sometimes linger—or become more important—ꦿwell after the two have tied the knot. Consequently, postnuptial agreements, or postnups, are gaining popularity.

Postnups are designed to settle some of the same issues a prenup does, such as who gets which property and how much alimony a spouse will receive after a split, but in this case, the contracts are 🦩signed after the wedding. It’s a way for couples to define what will happen, should a divorce happen. In this article, let's look at how a postnup works and whether it is enforceable.

Understanding Postnups

Though mid-marriage contracts are still a relatively new legal mechanism, a growing number of couples are becoming aware of them. In a 2015 survey by the American Academy of Matrimonial Lawyers, 90% of legal professionals said property division was one of the most common areas addressed by these contracts, followed by alimony/spousal maintenance (73%) and retirement accounts (45%). This trend continues to grow. In 2022, the Harris Poll found 15% of marriages or recently engaged couples had signed a property division agreement, a 500% increase from 2010.

The agreement can be in place for the duration of the marriage, or it may include a sunset provision in which the contract expires after a given number o𓆉f years. If the couple ends up getting divorced and the agreement is no longer in force, their marital assets and liabilities would be allocated in accordance with state law.

Among the decisions postnups don’t address: wha𓂃t the child support a𝕴rrangements will be or how child custody will be assigned after a divorce. Those are areas that the courts ultimately have to decide.

Reasons for Postnuptial Agreements

Couples may seek postnuptial agreements 澳洲幸运5官方开奖结果体彩网:for any number of reasons. It may be that they simply didn’t get around to drafting a prenup before their marriage. With a postnuptial agreement, they can iron out the same financial considerations they wanted to address all 𝐆along—albeit after they’ve exchanged vows. On the other hand, there’s an important life e🍨vent that pulls them down this path. The following are among the scenarios in which couples may seek a postnup.

Protecting an Inheritance

When one of the spouses expects a large inheritance, the two may want to work out who’s entitled to the money should they split. That’s especially important in community property states, in which assets acquired during the marriage generally are otherwise split equally between the spouses.

Inheritances received by one spouse during the marriage are usually not considered community property. However, if a bequest has been handled in a way that caused it to com🧔mingle with community property, that inherited asset . When there’s a postnup in place, the agreement would override that equal claim on t꧑he property and ensure that the individual beneficiary continued to have sole claim to their inheritance.

Even in some noncommunity property states like Pennsylvania, any increase in the value of the inheritance is considered marital property. Say a the wife acquired $1 million and it grew to $3 million during the marriage. The ❀$2 million gain would belong to both spouses. A postnup is a way for the spouses to agree that the whole sum will stay with the original owner.

Providing for Stay-At-Home Spouses

A stay-at-home spouse whose earning power has dwindled as a result of being out of the job market—or a spouse who wants to provide for children from a previous relationship—may also see the value of a legal document dictating the partition of asset﷽s. This could leave one spouse in a very vulnerable financial situation, and a p♎ostnup would try to protect that person as they try and get back into the workforce.

Repaying Gifts

In cases for which one spouse’s parents gave the couple a substantial amount of money—perhaps for the down payment on a house—a divorce settlement can be a particularly awkward process. A postnuptial agreement provides the in-laws (and their child) with the peace of mind that they’ll be reimbursed if the relationship doesn’t last. The contract may stipulate, fo💫r example, that the spouse whose family was the source of the money gets the first 🐬$100,000 in assets to recoup the funds. Sometimes, the way money is give does not create a legal obligation even though some people may want that legal protection.

Rebuilding a Relationship

In some cases, negotiating these issues is seen as a way to keep a struggling marriage solvent. Suppose, for example, that one of the individuals has been unfaithful. Agreeing on postdivorce terms that are favorable ♊to the other spouse can be a sign of an intention to keep the relationship intact.

Dividing Interest in a Business

Assets like bank accounts and retirement funds are relatively easy to value in a divorce proceeding. But putting a dollar figure on a business in which one or both spouses are principals is considerably harder. Because valuing a company can be extremely expensive and time-consuming, some couples use postnups as a way to categorize the business as separate property that will stay with the titled spouse. The couple may agree to give the ot🗹her spouse a bigger share of nonbusiness assets to make up for it.

How Much Will It Cost?

Though having a postnuptial may be a smart option for certain couples, these agreements usually don't come cheap. To avoid conflicts of interest, each spouse needs their own legal representative to hammer out the contract, and that can lead to significant attorney fees.

Each spouse can end up paying several thousand dollars, especially for more sizable estat𒁏es or in cases with which a business is involved. Even so, hashing things out during the marriage is less punishing than the alternative. Keep in mind that couples who have talked beforehand and seem to be on the same page can be able to better keep fees in check.

State Laws and Enforceability

Before procee💖ding with a postnup, it’s also worth keeping in mind that these agreements are easier to enforce in some states than in others. Most courts tend to uphold the agreements as long as they’re written, signed without coercion, and involve a full disclosure of financial infor𓆏mation on both sides.

However, some jurisdictions put up additional barriers or have specific language for postnups in their location. For example, in California, where spouses have a 澳洲幸运5官方开奖结果体彩网:fiduciary obligation to each other, the contract must reflect "the highest good faith and fair dealing [by] each spouse, and neither shall take any unfair advantage of the other.”

Because these contracts are less common than prenuptial agreements are, some states simply don’t have much case law with which to compare them. That’sღ why it’s important to get a local family law attorney who can help negotiate an agreement that holds up in court.

Prenups, on the other hand, have a longer history and benefit from nationwide acceptance. In theory, that makes them a better solution when it comes to designating what will happen to your financial assets and obligations. The reality, however, is that man♊y couples will see their financial picture change significantlဣy throughout their marriage; postnuptial contracts are a way to handle those changing circumstances.

The Bottom Line

Postnuptial agreements may seem like a safety blanket for stay-at-home spouses or couples trying to repair a damaged marriage. However, before proceeding, it’s worth figuring out the laws in your state through a reputable marriage attorney. In some cases, the agreements end up worthlไess by the time they reach the courtroom.