The Financial Benefits of a Postnuptial Agreement
A postnuptial agreement, unlike a prenuptial agreement, is a contract that a couple enters into after they are married. The contract will outline the terms of a divorce, including how assets and property are to be divided and spousal support, should they ever choose to dissolve the marriage. These terms could also apply in the event of either spouse’s death. While this might not sound like the most romantic thing for a married couple to do, the fact is that these agreements can safeguard the financial futures of both spouses in a worst-case scenario.
Below are some of the financial benefits you and your spouse can expect to reap from having a postnuptial agreement:
- Financial concerns: Not everything is always smooth sailing in a marriage. You might discover that your spouse secretly incurred some debts or that he or she developed a gambling problem. Finding out these unsavory details can severely damage a marriage, but for those who want to stay together and work out their problems, a postnuptial agreement can offer some protections and lay out the terms of which party will be responsible for paying the debt in the event of a divorce or even during the marriage. This gives the non-indebted spouse the benefit of feeling financially secure, knowing that he or she will not be financially worse off for trying to repair the marriage.
- Unequal assets: When a spouse has substantially more money than the other, he or she might feel the need to secure a higher portion in the event of a divorce. On the flipside, a spouse who had to leave the workforce to raise children might also feel the need to create a financial safety net in case the marriage ends, or to simply feel more secure in the marriage.
- Subsequent marriages: For many, it is not unusual to have been previously married. They are no strangers to divorce and, as such, might want to do what they can to preserve assets for their children or their grandchildren. With a postnuptial agreement, you can delegate which assets during the marriage can be used to help support your spouse’s other family members and which cannot.
- New inheritances: During the course of a marriage, one or both spouses might inherit assets. These inheritances are generally considered separate from marital funds, but if an inheriting spouse wishes to use those new assets to contribute to the purchase of a new family home or some other type of investment that will help the family, a postnuptial agreement can be useful. In the agreement, you can state what will happen to the inherited funds in the event of a death or a divorce.
- Purchase of property: Much like trying to figure out what to do with inherited funds, when a couple uses funds that were earned prior to the marriage to purchase or renovate a home, spouses might worry about who will receive credit for the funds used, whose name will be on the deed, and what can potentially happen to the home in the event of a divorce. For those who are already in the midst of a troubled marriage, these concerns can be even more pressing. With a postnuptial agreement, you can ease these worries by laying out the terms for what happens to the property or assets used for a renovation if the marriage ends.
- No prenuptial agreement: A lot goes into making a marriage happen and sometimes couples run out of time to draft a prenuptial agreement or simply back out entirely for any number of reasons. Luckily, postnuptial agreements give you the chance to lay out the terms you would have liked to have put in place with a prenuptial agreement, so there is no need to worry about missed opportunities.
Postnuptial Agreements in New Port Richey
There are a number of excellent reasons why married couples might choose to enter into a postnuptial agreement. It might never come into play, but it can often make spouses feel more financially secure. If you would like to create a postnuptial agreement, reach out to the team at Dale L. Bernstein Chartered Law Office. Backed by over 35 years of experience in family law, you know you can be confident in receiving exceptional service and advice.
Contact our office today at (727) 312-1112 to schedule an appointment with a qualified New Port Richey family law attorney.