Whether a couple got a prenuptial agreement before their wedding or not, drawing up a postnuptial agreement after some years of marriage can help them formalize property division and alimony terms in the event that they divorce. However, like a prenup, there is no reason why a postnuptial agreement should increase the likelihood of a breakup. If the marriage does end, a postnup can make the legal process more efficient, less combative and less costly.
Many couples who put prenups in place before they get married never use them because they are happy in their relationship. Unless a sunset provision is included, a marital agreement does not expire. There are situations however where a prenuptial agreement might not be useful or enforceable because the terms no longer reflect a couple’s financial situation.
It is wise for couples to review their prenups occasionally, especially if their circumstances have changed or there is trouble in the marriage. The original agreement may need to be modified, like any other contract that has outlived its usefulness. Any agreement entered into after marriage – even if it’s a modification of an existing prenup – is considered a postnuptial agreement.
You do not need to have had a prenup to draw up a postnup. Many couples without prior agreements put a postnup in place to protect themselves and their financial interests if there is a divorce. These documents can set forth which spouse owns particular assets, and how joint assets would be divided in a divorce. A postnup can also be used to address alimony in the event the marriage ends.
Specific situations that frequently motivate couples to negotiate a postnup include the following:
- One spouse earns significantly more income than the other.
- One spouse stopped or cut back on working to be a stay-at-home parent or caregiver.
- A spouse received, or anticipates receiving, a large inheritance.
- One spouse has accrued a lot of debt on their own.
- One or both spouses own a business.
- One or both spouses have acquired other valuable assets during the marriage.
- One spouse has developed a disability or chronic illness that affects their ability to work.
These are just some examples of factors that could affect spousal maintenance (alimony) and property distribution in a divorce. However, a postnup does not have to be a “pre-divorce” agreement. In fact, it is better to draw up a postnup while a relationship is healthy than to wait until divorce is on the horizon. In essence, a postnup acts like a financial security blanket, and that reassurance can ease tensions that might otherwise negatively affect a marriage.
Just as with a prenup, each spouse needs to have their own individual legal representation when negotiating and executing a postnup. Bryan L. Salamone and Associates P.C. handles matters relating to prenuptial and postnuptial agreements for clients throughout Nassau and Suffolk counites. To discuss your particular New York family law concern, please call 631-388-6009 or contact us online.