If you are in that phase of life where it’s necessary to make adjustments with your better-half, then be sure to understand the postnuptial agreement because it is the only way to make things work again.
With this agreement, you can set rules and prevent your personal assets that can help to survive if your marriage ends either by separation or divorce. But before that, let’s know some basic facts about postnuptial agreement.
What Is a Post Nuptial Agreement?
This written agreement is made between two people, who are in a marital relationship or claimed a civil union, to settle matters, particularly assets and couple’s affairs, as the result of divorce or separation.
It can either be acknowledged or notarized and subject to the statute of mischief or fraud. Similar to the prenuptial agreement, the provision of post nuptial agreement differs from one another.
However, the major provisions remain the same as they discuss spousal support and division of properties due to death of either of them, breakage or divorce of the relationship.
The basis of this agreement lies in the beginning of the marital relationship when two people decide to get married and agree to share the assets they own (be it debts, bank accounts, properties etc.).
They also agree on equitable or 50/50 division of these assets at the time of divorce (but in accordance with the marital property laws prevailing in the city).
Post nuptial agreements are not as common as prenuptial agreements because of the legal and technical aspects involved in them. Couples have to look at the post nuptial agreement samples in order to understand the involvement of the following factors:
- One or both created this relationship with beaucoup bucks i.e. expected inheritance of assets or pre-marital assets
- Either of them was already a parent
- Either or both own a profitable business
- Dislike the idea of prenuptial agreement
- Received a huge inheritance recently
How Post Nuptial Agreement Differs From Prenuptial Agreement?
Prenuptial and postnuptial agreement are created between two individuals who are either getting married or are already living a marital life. They often discuss a number of matters like future income, spousal support, retirement benefits and asset divisions.
These documents work as the tools to identify the extent or nature of ownership based on marital ground rules. Keep in mind that they are completely different from each other.
The primary difference is in the date of their creation. Prenuptial agreements are created before marriage, while postnuptial agreement is required after it.
Prenuptial agreements are usually created among those individuals who already own properties and assets, especially community properties. These properties are divided in half when the couple is separated.
These agreements are also needed when one individual wants to look after family business, doesn’t want to bear the burden of other’s debt or to ascertain financial responsibilities in their relationships.
While post nuptial agreement samples are similar to address the issues, they tend to handle matters after the couple gets into a marital relationship or is involved in a civil union. Another thing that creates a difference between the two is the involvement of attorneys.
It can be created by the same attorney who creates prenups, but when it comes to prenuptial agreements, a separate counsel is needed every time.
Postnuptial agreements can be at their best when there are no prenups between the couples and they are struggling to settle down on the future of their marriage. Also, they are useful when couples want some change in their marital lives.
Some facts also confirm that prenuptial agreements are more reliable than postnuptial agreements because they impose a different fiduciary responsibility and duty between the couples as compared to those who get into the agreement before marriage.
What Is Included in Post Nuptial Agreement?
When looked at a post nuptial agreement, it includes provisions to divide assets and properties after divorce, division of debts, parameters of spousal support and the future steps to handle assets after either of them dies.
Though, it doesn’t include provisions of child custody and support. It is the state law that will determine what will and will not include in the agreement. Some of the common provisions are mentioned below:
- Criterion of property division and other assets when the marriage is over
- Who will be paying for spousal support and for how long it will continue
- Criterion to divide marital debts at the time of divorce, along with the things such as credit card debt, mortgage loans and the likes
- How the assets will pass to either spouse if anyone dies during marriage, consisting of the provisions if divorce proceedings were underway
Now that the basics about the agreement are clear, you can even go for a do-it-yourself post nuptial agreement and create your own clause based on mutual understanding with your spouse.
It’s just about realizing the right time to create a post nuptial agreement. CocoSign can also help you to make an appropriate agreement.
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