Most engaged couples sign prenuptial agreements to separate personal property from marital should the marriage fail to work. Done right, a prenup can protect your interests and save you from a costly battle for marital property in the event of a divorce.
Once you get married, however, you can no longer sign a prenup. Rather, you can sign a postnuptial agreement. Just like a prenup, a postnuptial agreement allows a married couple to protect themselves and their assets should they divorce in the future. But how do you know you need to create a postnuptial agreement?
Here are two questions that can help you determine if a postnuptial agreement is right for you.
Have you had serious differences in your relationship?
It is not uncommon for a couple to have differences. However, some differences have the potential of breaking a marriage. Perhaps your spouse has developed an addiction to hard drugs, become violent or is having an affair.
When there are serious issues with the relationship, and both parties are keen to make things work, a postnuptial agreement can set the rules for the marriage going forward, punish misconduct and secure your interests.
Do you have children from a previous relationship?
If you have children from a previous relationship, you need to secure their future by allotting them inheritance from your estate. And one way you can achieve this is by signing a postnuptial agreement. Without a postnuptial agreement (combined with appropriate estate planning tools like a will and a trust), your children might be put at a disadvantage in the future.
Signing a postnuptial agreement can help protect you and your spouse from a financial disaster should your marriage collapse.