No one enters a marriage intending to get divorced, and this is one reason you might be against the idea of a post-nuptial agreement.
A post-nuptial agreement is a written, legally binding document that describes how marital assets will be divided if you divorce.
The thought of deciding how to split your marital property if you divorce could make you feel like you have no faith your marriage will last.
Change is inevitable
However, circumstances often change over the course of a marriage. You or your spouse may receive a large inheritance or one of you might get a promotion with a huge salary increase.
Sometimes these changes mean a post-nuptial agreement could be a smart and responsible choice, rather than a sign that your marriage is over.
The primary difference between a post-nuptial agreement and a pre-nuptial agreement is that a post-nuptial agreement is done after marriage instead of before.
But how do you know if a post-nuptial agreement is a good idea? Here are some tips.
Difference in income or assets
A post-nuptial agreement is recommended if one spouse has significantly more assets than the other, whether those assets were brought into the marriage or expected to be received in the future.
This is commonly seen in scenarios where one spouse quits working to stay home and take care of children or to relocate for the other spouse’s job. A post-nuptial agreement can ensure that spouse receives a fair share of assets even though they were not bringing in the income.
The same reasoning applies when one’s spouse owns a business. A post-nuptial agreement can protect the business during a divorce and potentially prevent the other spouse from receiving a share of the business or its earnings.
Children from a previous marriage
If you have children from a previous marriage or relationship, a post-nuptial agreement can help you protect assets that you want to leave to your children.
The agreement will state exactly what assets your spouse receives, allowing you to preserve the other ones for your children. Without a post-nuptial agreement, your assets could automatically go to your spouse.
