What is a Postnuptial Agreement and Should I Consider One?

You’ve heard of prenuptial agreements. Those are agreements that are signed before a marriage happens. Postnuptial agreements, on the other hand, are very similar to prenuptial agreements, but they’re simply after the parties are already married. There are a lot of good reasons why you might want to sign a pre- or postnuptial agreement with your spouse. In this article, the Largo, FL family law attorneys will discuss the potential benefits of a postnuptial agreement and how they work in Florida.

What is a post-nuptial agreement? 

Technically speaking, a postnuptial agreement is a contract between you and your spouse that outlines specific factors related to a potential divorce. These factors included equitable distribution of marital assets and debts as well as alimony provisions. These agreements cannot contain anything related to child custody or child support. That is the sole purview of the court to decide.

Unlike prenuptial agreements, postnuptial agreements are signed after you are legally married. Postnuptial agreements could be particularly valuable for those of high net worth where there are substantial assets at stake.

Postnuptial agreements allow you to:

• Separate property from the marital estate (it is this property that gets divided upon divorce)
• Establish specific terms for asset division
• Protect business interests and other assets
• Establish provisions for alimony or spousal support

While no recently married couple wants to prepare for divorce, having a postnuptial agreement in place ensures that you won’t spend endless time (and considerable money) litigating the matter in front of a judge.

How does a postnuptial agreement benefit high-net-worth individuals? 

Postnuptial agreements offer several benefits. These include:

• Asset protection – Protecting your wealth is important for high-net-worth individuals. A postnuptial agreement can shield specific assets from the process of equitable distribution in the state of Florida. This ensures that these assets remain your separate property after the divorce.

• Business continuity – If you start a business during your marriage, that business is generally considered property of the marital estate. It is thus subject to equitable distribution in Florida. If you want to protect that business from equitable distribution, you can do so with a postnuptial agreement.

• Address financial issues upfront – Postnuptial agreements provide considerable clarity when it comes to financial matters. It allows you to address these matters before they become an issue and before they go before a judge. You will spend thousands of dollars arguing about property distribution before a judge. A postnuptial agreement can save you considerable time and money when it comes to deciding these matters in the event of divorce.

Talk to a Largo, FL Family Law Attorney Today 

Have you recently started a new business or acquired a piece of property? If so, then you may be interested in separating this property from the marital estate. It’s the marital estate that gets distributed when you divorce. Keeping the asset as separate property avoids costly battles over the asset or business later. Call the Clearwater family attorneys at Cairns Law, P.A. for more information on how a postnuptial agreement can work for you.