A postnuptial agreement, also known as a postnup, is a marital contract that outlines the division of assets in the event of divorce. But if you did not sign a prenuptial (prenup) agreement before marriage, why would you consider signing something similar after marriage?
There are a lot of reasons why you should consider enacting a postnup. Here are a few situations that may cause you to consider entering this type of marital contract.
1. You are in your second marriage
According to ABC News, one reason you may consider signing a postnup is if you are in your second marriage with children from a past marriage. In this situation, you probably want to make sure certain assets will eventually go to your children instead of to your current spouse if you ever divorce. You should also keep any potential care for older family members, disabled family members or children in mind.
2. You experience a change in your financial status
If your wealth suddenly increases, you may consider protecting some of your finances through a marriage contract. For example, you may rise to a more prominent position in your family business or even inherit a family business. You may also start your own business and watch it grow into a successful venture. In this case, you likely want to protect the business itself or outside partners from a potential divorce. Signing a postnup can safeguard these business assets while providing an adequate settlement for your spouse should your marriage come to an end.
3. You cannot agree on money issues
Sometimes it is difficult for spouses to come to an agreement on financial priorities. If these arguments are bringing trouble to your marriage, a postnup may help you solve these problems. While you may assume a postnup may be awkward or problematic to bring up, it could actually make your marriage more peaceful.