What’s the purpose of a postnuptial agreement?

You’re already familiar with the concept of a prenuptial agreement. But what if you’re already married? Is it too late?

No, it’s not. Postnuptial agreements, which are like prenuptial agreements only executed after the marriage begins, are becoming increasingly popular as more couples see the value of a contract after exchanging their vows.

The basics of a postnuptial agreement

Postnuptial agreements can vary depending on the couple’s situation, but they typically include the following:

• Guidelines on the division of assets and debts, both marital and separate
• How the couple will share financial responsibilities
• An outline of decision-making authority
• The duration and amount of potential spousal support

So, what are the reasons why a couple may decide to have a postnuptial agreement? In general:

• There has been a significant change in the financial circumstances of either spouse, such as receiving an inheritance, starting a business or making a career change.
• The couple is experiencing marital problems and may use a postnuptial agreement in an attempt to address and resolve their issues.
• To protect individual assets from division in the event of death or divorce, especially if there are children from a previous marriage.

Postnuptial agreements are valid and enforceable in California so long as both parties are entering the agreement voluntarily, and there are no indications of coercion. In addition, each spouse must be open and honest regarding their financial situation, the terms should be reasonable and fair to both parties and the agreement must be in writing and signed by both parties. Finally, a prenuptial agreement also needs to be notarized and filed with the court

Before signing any postnuptial agreement, both sides should have it reviewed to ensure that it’s legally binding and fair and considers the needs and interests of both parties.