Marriage is something people choose to enter into out of love. During the planning stages of a ceremony, pondering what may happen should the marriage end may detract from the romantic affair.
After the honeymoon, some couples may want to revisit the issue of handling property in the unfortunate event of a divorce. After marriage, the parties may sign a postnuptial agreement to establish the financial terms of a breakup. Review three reasons to consider creating this agreement after marriage.
- One spouse gets an inheritance
Inheritances or gifts do not always become marital property; however, in some cases, they do. One party may receive a significant amount of money after a relative dies. A postnuptial agreement sets forth how much of the inheritance goes into the marital pot. During a divorce, assets acquired during the marriage get split equitably based on the contribution of each spouse to the marriage financially and otherwise.
- This is a second marriage
Taking the plunge into a second marriage is trickier in many ways. A postnuptial agreement is an excellent way for each spouse to address specific financial wishes. If either party has children from a prior relationship, he or she may establish how money should flow to those children in a divorce or death. In this way, a postnup may stop rifts many second marriages face.
- It makes sense
After settling down, the parties may become more open to striking a deal on how to split things in a divorce. Over time, they may come to realize that these types of agreements do not doom a relationship, but rather provide an insurance policy that they only utilize in the event of a breakup. A legally binding agreement between spouses on how money and property division will work during a divorce may ease much of the process’s hostility.
The future is always changing, and planning for a divorce before or after a wedding does not mean that the worst will happen. It may mean that the parties get through whatever life throws at them with much less resentment and anger.