Prenuptial And Postnuptial Agreements On The Rise
Prenuptial and postnuptial agreements can offer clarity over who owns what assets and who is responsible for debts.
December 06, 2012
Prenuptial and postnuptial agreements on the riseTo love, honor, and keep all property separate? With divorce rates continuing to hover around 50 percent throughout the country, more and more couples are using contracts to outline what assets belong to which spouse.
Some are using agreements set up prior to the wedding, called a prenuptial agreement, while others are outlining the terms after the wedding, called a postnuptial agreement. These contracts can help ease financial stress between couples by clearly outlining how assets will be split if the marriage fails.
Although this may seem like a depressing topic for a happy couple to discuss, it may help reduce financial arguments in the future. Since more and more couples are waiting longer to get married, more individuals own homes or have established retirement plans prior to walking down the aisle. Others may have been married before and want to ensure children from a previous marriage receive certain assets. As a result, prenuptial and postnuptial agreements make sense for many couples.
Prenuptial versus postnuptial agreements
A prenuptial agreement can guide the division of property and spousal support or alimony payments in the event of a future divorce. The financial aspects of a prenuptial agreement are often enforced in court as long as the agreement is made in writing and with full disclosure. Portions of the agreement referring to child custody, however, may not be enforceable.
Not all couples sign a prenuptial agreement prior to the wedding. However, as a couple's financial situation changes they may choose to sign an agreement offering similar protections after the wedding. This contract is called a postnuptial agreement.
The discussion to develop a postnuptial agreement may be fueled by discord within the marriage or by a desire to provide a sense of security. Whatever the motivation, this agreement can help take any disagreements around who owns what assets or who is responsible for any outstanding debts out of the equation so a couple can focus on other areas of the relationship.
Similar to a prenuptial agreement, it is important for each spouse to fully disclose all assets and debts prior to developing a postnuptial agreement. The court will likely not enforce the contract if any of these finances are hidden when the terms of the postnuptial agreement are outlined.
Setting up these contracts can be difficult and there are many rules that have to be followed. If you are considering a prenuptial or postnuptial agreement, discuss your situation with an experienced prenuptial agreement attorney to better ensure your legal rights are protected.
Article provided by Law Offices of Jonathan W. Fein
Visit us at http://www.feinlaw.com