What Does a Postnuptial Agreement Do?

A postnuptial agreement is a legally binding document that a married couple creates after their wedding. It outlines how their assets, liabilities, and other financial matters will be handled in the event of a divorce, separation, or death. Unlike prenuptial agreements, which are made before marriage, postnuptial agreements are entered into after the marriage has already begun. They serve several purposes:

1. Clarifying Financial Rights and Obligations: The agreement details how the couple’s property and debts will be divided if the marriage ends. This can prevent disputes and provide clear guidance for both parties.

2. Protecting Individual Assets: It can safeguard personal assets that one partner may wish to keep separate from shared marital assets. This is especially important if one partner brings significant wealth into the marriage or expects to inherit significant assets.

3. Providing for Children from Previous Relationships: If either spouse has children from a previous relationship, a postnuptial agreement can specify how those children’s inheritance rights will be protected.

4. Addressing Spousal Support: The agreement can outline the terms of spousal support or alimony, including whether one spouse will receive support and, if so, how much.

5. Reducing Conflict: By clearly defining financial arrangements and expectations, a postnuptial agreement can reduce the potential for conflict and lengthy litigation in the event of divorce.

6. Estate Planning: The agreement can integrate with estate planning to ensure that the couple’s wishes regarding their assets are fulfilled after their deaths.

7. Providing a Sense of Security: It offers both partners a sense of security by clarifying how financial matters will be handled, which can strengthen the relationship and prevent misunderstandings.

Creating a postnuptial agreement involves financial disclosure from both parties and often requires the assistance of legal professionals to ensure that the document is fair and enforceable. The process can be complex, but it helps ensure that both parties' rights and interests are protected.