The idea of getting a prenuptial agreement isn’t something all couples consider. However, there may be couples considering marriage who would benefit from a legal agreement as an insurance plan. Alternatively, there’s the potential of a postnuptial agreement for those already married. Which is the best option out of prenuptial and postnuptial agreements, and should you consider getting either of them?
Prenuptial Agreements
Let’s start with prenuptial agreements because these are the ones most couples are familiar with. The term became more well-known as high-profile couples openly admitted to getting them before marrying or getting engaged. The concept is that both parties can reach a financial agreement on how assets obtained before the relationship and those generated after marriage will be proportioned if the marriage breaks down. Having all this in writing can make it much easier for everyone to go their separate ways with what they are owed without the need for nasty court cases. Of course, most couples hope never to call on a prenup, but it’s a good insurance policy.
These plans can cover a range of financial factors to provide peace of mind. In fact, the more you add to the agreement, the easier it is to divide them up. The main aim is to determine how to handle the division of property and debts, how to protect inheritances, and how to consider business ownership. There’s also room for agreements about child support, although courts can overrule these depending on the situation.
Postnuptial Agreements
The alternative to a prenuptial agreement is a postnuptial agreement. As the name suggests, this is an opportunity for couples to draw up these financial plans after their marriage. The purpose remains the same. You and your spouse can go over everything you might not have spoken about before the wedding to make sure that you are both on the same page. It’s possible you hadn’t seen the need for a prenuptial agreement before the wedding but were talked into seeking help by in-laws and friends afterward. Or, maybe the wedding was a spur-of-the-moment decision where you eloped and never considered the financial consequences.
A postnuptial agreement is also an opportunity to go over any agreements that weren’t legally binding to give them great validity. This could be of use to any couple dealing with a change in circumstances. For example, you may have married young with no savings to your name and a rental property. Now, you’re much more successful with buying property, business assets, and kids to care for, and you might need that legal protection. The good news is that it doesn’t matter how long you have been married. One of you could hit the jackpot after 40 years and decide it might be time to create a legal agreement.
Which Is Better? Prenup or Postnup?
This is a good question because it can help you and your partner decide which route to take. There’s no obligation for you to take either if you have similar levels of income and assets or don’t want the stress of dealing with lawyers. You can continue without one and either go on to have a long and happy marriage or negotiate an amicable divorce. However, you can’t be sure that will happen in 5, 10, or 20 years. It might be wise to have something in place to fall back on.
Many couples and lawyers will say that the prenup is the best approach. It puts everything out on the table and lets you start your marriage in place of honesty and complete understanding. You can go over your finances and assets as they stand and determine appropriate clauses for hypothetical events. It’s a little more difficult with postnuptial agreements because your finances and assets aren’t as separate. For example, it’s easy to separate income, property, and investments made outside the marriage, but not so much as a married couple. Joint purchases of family homes, joint business ventures, and other investments could muddy the waters.
On the other hand, postnuptial agreements can be beneficial for those who experience significant financial changes during their marriage. If one partner suddenly excels in business and becomes worth more than the other, who then quits their job and doesn’t bring in an income, this could change everything. A postnup would make it clear what would happen to the wealthier partner’s assets and earnings in the event of divorce.
Work With A Qualified Prenuptial And Postnuptial Agreement Lawyer
There’s clearly a lot to discuss when it comes to setting up either a prenuptial or postnuptial agreement. These sessions aim to put you and your partner in a better position of strength. Still, that can only happen when you have a lawyer who can go through every consideration and treat couples with patience and respect.
The best prenup lawyers, like Dutton Gregory, have plenty of experience in this field and have seen it all when it comes to setting up agreements. They will have the skills to help both parties go through their financial affairs with the same level of care and support. Nobody should be given better or preferential treatment based on their status or earnings. They will also work hard to create something that suits both parties while meeting legal standards. Also, don’t forget that these agreements should be open to adaptation if circumstances change. Your lawyer should make that clear and be available to help if the time comes.
Is It Time To Get Your Financial Affairs In Order?
The next step for couples interested in these pre- and postnuptial agreements is to have a long, honest conversation. Is this something you’re both happy to do together? Will an agreement provide peace of mind, or will the act of making one cause more strain? They aren’t for everyone, but they can be helpful for many couples where one partner’s assets outweigh the other’s. Talk it over, and if you want to proceed, find a local lawyer who can get you the agreement you need.