Postnuptial agreements can play a vital role in couple’s life in the event of death or divorce. Marriages are no doubt entered with good intentions but circumstances can change and cause significant havoc in one’s life when they break up.
What Is Postnuptial Agreement?
A postnuptial agreement is a legal document that is created by couples in order to handle their financial matters after they get married. It primarily highlights how assets and debts will be managed in case of a divorce. A postnuptial agreement does not include settlement over parenting time and decision-making responsibility of parents.
Essentially, there’s no huge difference between a prenuptial agreement and postnuptial agreement, the only difference is the “timing”. A prenuptial agreement is signed before the marriage whereas the postnuptial agreement is signed after the partners get married.
Why Should One Consider A Postnuptial Agreement?
Before signing a postnuptial agreement, it is essential to know whether you really need one. If you are likely to own a significant amount of assets and large estate during the marriage, then having a postnuptial agreement is highly advisable and beneficial. It allows you to clearly document the gifts, property, or assets owned before marriage separately from the assets and liabilities acquired jointly after the marriage. This not only ensures clarity but also affords protection to both of the spouses by safeguarding their rights in the event of a divorce.
Who Can Benefit From A Postnuptial Agreement?
This does not mean only the wealthier ones can benefit from this agreement while anyone entering into a marriage can ease the process through this agreement. Whether it is about protecting family assets or deciding how to manage the shared expenses, a postnuptial agreement helps the spouses to stay on the same page. Essentially it is not about management of huge finances, it is all about clarity and fairness, regardless of how much money is involved.
It is pertinent to mention that postnuptial agreement does not become enforceable upon execution unlike a prenuptial agreement and the court may intervene, if necessary, to overview the agreement, therefore, having a lawyer on-board prior to the execution of agreement can be a good way to protect your rights and interests in a death or divorce scenario.
Here are few benefits of executing a postnuptial agreement during your marriage:
- Protection of Assets
A postnuptial agreement can be a great way of handling the division of assets. Any financial gain that one is anticipating to accumulate during the marriage, can be greatly protected in death or divorce situations.
- Management of Debt
Just like assets protection, a postnuptial agreement can specify how the debt will be managed that the partner/partners have incurred during the marriage.
- Clarification of financial responsibilities
Couples can establish clear guidelines regarding the financial responsibilities of both partners. This may include expense sharing, monthly rentals, specific bills, accounts, investments, etc.
- Greater Room for amendments
Life and circumstances can change. A postnuptial agreement allows partners to amend or update their postnuptial agreement if needed. This allows them to make sure that the agreement is effective and relevant.
Contact The Lawyers At Ayaz Mehdi Professional Corporation!
For tailored legal assistance regarding your postnuptial agreement, reach out to our family lawyers.
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