Prenuptial agreements are contracts that engaged couples sign before getting married. Postnuptial agreements are essentially contracts that married couples negotiate with one another. Prenuptial agreements help people start marital relationships off confidently. Postnuptial agreements often address many of the same concerns as prenuptial agreements.
However, the motivation for drafting the document may be slightly different. Proposing a marital contract to a spouse can be a nerve-racking undertaking. People who recognize the potential benefits of a postnuptial agreement are less likely to upset their spouses or struggle to justify their requests.
What benefits can people highlight as they suggest a postnuptial agreement to their spouses?
1. The protection of key assets
Certain assets are usually separate property when spouses divorce. However, commingling could lead to confusion about whether assets are part of the property division process or not.
Spouses who receive significant windfalls, including sizable inheritances, may want to draft postnuptial agreements to protect their resources. Those who start successful companies or professional practices may want to draft an agreement to establish those business holdings as separate property.
2. Accountability for misconduct
Frequently, the decision to draft a postnuptial agreement follows changes to the spousal relationship. Issues related to infidelity, substance abuse, gambling or financial management could leave one spouse anxious about their financial protection. Postnuptial agreements can help address certain forms of misconduct and extend protection for spouses who choose to stay in the relationship despite the current challenges they face.
3. An improved marital dynamic
Many people find that negotiating a postnuptial agreement actually strengthens their marital relationships. Discussing issues that have previously arisen and reviewing personal expectations can help spouses realign with one another and improve how they relate to one another. Spouses who discuss their current financial and lifestyle priorities with one another can identify ways to improve their overall satisfaction with daily life and one another.
Proposing a postnuptial agreement is not indicative of giving up on a marital relationship. If anything, it is a sign that spouses still have hope for the future or aspire to limit future conflict with one another. Spouses who align their values and priorities can preserve their relationships or at least limit the likelihood of a contentious divorce occurring in the future.