Some people recognize that they need legal protection when they first get engaged. People entering a marriage with high-value assets and individuals starting blended families are among those who may decide that a prenuptial agreement might be in their best interests.
Many others begin a marriage with no formal legal protection, only to realize later that they may require a contract with their spouse. Postnuptial agreements have become somewhat commonplace. Couples who have already married negotiate terms that allow them to protect themselves or preserve a struggling marital relationship. The following are some of the common goals that motivate people to establish a postnuptial agreement with their spouses.
The protection of high-value assets
Some people realize that they need a postnuptial agreement after achieving personal success. Their small business grows into a thriving company, for example. Other times, it might be an inheritance that inspires the creation of a postnuptial agreement. Many people negotiate marital contracts because they want to designate certain assets as their separate property that they do not share ownership of with a spouse.
Concerns about career sacrifices
Perhaps a couple recently decided to have a child or adopt. Maybe aging parents require so much support that one spouse has to switch to part-time employment. It is common for one spouse to make certain professional sacrifices for the overall benefit of the family unit. Leaving a job or deprioritizing a career can make it more difficult for one spouse to regain their financial independence if they ever divorce. Spouses frequently establish specific rules for property division or financial support in postnuptial agreements. Doing so in response to anticipated professional sacrifices can help people minimize the risk involved in prioritizing their families over their income.
A desire for an amicable divorce
Perhaps empty nest syndrome has forced spouses to acknowledge that they no longer cooperate well. Perhaps changes in their values or personalities have made the marriage less happy and functional than it was previously. People who recognize that they may soon divorce often want to avoid messy, high-conflict divorce proceedings if possible. By negotiating clear terms for property division and financial support, spouses can pay the way for an amicable, uncontested divorce.
For some couples, postnuptial agreements help them refocus on their marriage and make the best of a difficult situation. For others, postnuptial agreements limit the conflict that arises during divorce. Discussing marital contracts with a spouse could help those who want to work on their marriages and those who hope to avoid complicated divorces.