What is a Post-Nuptial Agreement?
Many people are familiar with prenuptial agreements, also known as prenups, because celebrities and the super rich routinely get them to protect their wealth when they marry. But another legal contract becoming popular is the postnuptial agreement or postnup. As the prefix post suggests, it is created after the marriage takes place.
There are many reasons to create a postnup[CK1]. Perhaps the couple eloped and never had a chance to create a prenup. Or the married couple experiences dramatic changes in their financial life, including the following:
- A career change
- Receipt of an inheritance
- Profitable gains on investments
- Launching or selling a business
Since money issues undermine many marriages, it makes sense for a married couple to formulate a plan for dividing property and assets fairly, and planning for spousal and child support as well as child custody.
A postnup can save time and money in the event of a divorce. The results are often better, because the difficult, emotional decisions were made at a less contentious time in the relationship.
If a disgruntled couple is contemplating divorce, the postnup process allows them to understand clearly the legal and financial ramifications of divorce before they go through with it. It also forces them to resolve their disputes, or prepare for the difficult divorce process. Either way, you need strong, dedicated legal counsel to protect your interests aggressively.