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When are postnuptial agreements appropriate?

On Behalf of | Dec 16, 2020 | Family Law

Those seeking to know whether a postnuptial agreement is appropriate likely already know about postnuptial agreements. However, for those that do not know, postnuptial agreements are exactly what they sound like, an agreement entered into after a marriage by the married spouses. They do not cover child custody. They only cover financial matters, and they provide a financial outline for how couples will be affected, should they divorce.

Scenario 1: something bad happened

For couples struggling to re-couple after something bad happened, a post-nup can be useful. The bad could be an affair, but it could also be wasteful spending or gambling. It could also be a drug or alcohol problem. The key to this scenario though is that the couple is attempting to get back together after the bad event tore them apart.

Here, the post-nup will lay out each spouse’s personal accountability and responsibilities. For some, this will mean, “if this happens again, this is what will happen,” like a consequence for bad behavior. For others, it may be a way for couples to reconcile emotionally and as a couple, but limiting one’s additional financial legal exposure, should the bad event happen again. Post-nups here are pathways to moving in the right direction to get one’s marriage back on track, holding each other accountable for their actions.

Scenario 2: changes to existing premarital agreements

Couples are rarely at the same place decades later as they were at the beginning of their marriages. People inherit money and breadwinners can change; life happens. This means that premarital or prenuptial agreements will likely need to be changed, at some point, through a post-nup.

Scenario 3: new business arrangements

When Alexander City, Alabama, married couples enter business arrangements, they may think that arraignment will be guided by business and commercial law. However, in a divorce, the divorce judge is king. This is why it is so important to enter into a post-nup when creating new business arrangements as, other than child custody, this will likely be the most hotly contested item in a divorce. This is especially important for those entering into a business with outside partners as they will probably want some document that outlines spousal interests, including what happens if a spouse dies. Of course, this all means couples should contact an attorney for help.