What Are Some of the Common Reasons Why Couples Enter into Postnuptial Agreements After Marriage?
As attorneys who assist a number of clients with family law issues here in Florida each year, we have found that more and more couples are aware of the many benefits that prenuptial agreements can bring to a couple’s sense of security, but what about postnuptial agreements? Postnups offer the same benefits that prenups do except that they are entered into after marriage, and they aren’t just for couples who perhaps didn’t think to enter into a prenup; they fulfill a unique purpose for a number of circumstances that may arise after marriage, such as helping to provide security where significant assets were acquired after marriage.
Below, we discuss some of the circumstances that may warrant entering into a postnup:
Your Financial Circumstances Have Shifted
A dramatic shift in financial circumstances is one such occasion that warrants visiting postnup options. Perhaps this is due to an invention or other work product that finally came to fruition, or a business that was started and took off. One entrepreneur described it as ensuring that, if there is a dissolution of the marriage, you are giving up “60 percent of 10 million now [rather] than 40 percent of a future 100 million.”
You Need to Spell Out What Property Is Separate Versus Marital
Couples who work in real estate are another type of client that we tend to see interested in postnups. This helps to separate and protect property from each other. This is especially important in terms of separate property potentially becoming marital property if for example marital funds are used to do maintenance or repairs. For those who work in real estate and may invest in different properties so that they can be refurbished and sold later on, it is extremely important to spell all of this out so that there is no risk that something might be considered marital property later on. The postnup is an integral part of placing inherited assets into protection trusts or other entities in order to insulate it and keep it separate from other income and costs.
You Want to Pass Certain Assets onto Individuals Outside of Your Marriage
Individuals who want to make sure that certain assets are passed onto outside family or friends are also sometimes interested in postnups. This might be the case for example if they have children outside of their current marriage.
You Have Concerns About Your Retirement
Retirement represents another powerful asset category that more and more couples are concerned about, especially since the “gray divorce” rate (after the age of 50) is on the rise. Even if a couple did get a prenup, it might very well be outdated by the time a couple obtains a divorce later in life and retirement assets become relevant in terms of potentially being split up. Postnups can be helpful if you are at all concerned that you may not be able to take care of yourself if your retirement funds are cut in half.
You Are Going to Separate, Not Divorce
Postnups are also sometimes used for couples who want to get a separation but are not yet ready to obtain a divorce. It can be easier to enter into a postnup while a couple is still on speaking terms – i.e. during separation – and are able to hash out what is separate versus marital property – which then makes divorce later on less difficult and expensive.
Contact Our Florida Family Law Attorneys to Find Out More
At the Arwani Law Firm, our Florida postnuptial agreement lawyers are here to help you create and implement a beneficial agreement that ensures your protection later on. Contact our Orlando family attorneys today to find out more.