Most people are familiar with prenuptial agreements that may be signed before a couple gets married. While these agreements can be especially beneficial in situations where one or both spouses own substantial assets before they get married, a prenup can help any couple decide how they will handle certain matters if they ever get divorced. However, what many people may not know is that these types of agreements can also be made after getting married. While some may wonder why a postnuptial agreement would be necessary if a couple did not create a prenuptial agreement, there are many different reasons that couples may choose to enter into these types of agreements.

Situations Where a Postnuptial Agreement May Be Needed

As with prenups, postnups can specify how the division of marital property will be handled during a potential divorce, as well as whether either spouse will pay spousal support to the other. Some examples of cases where spouses may wish to create a postnuptial agreement include:

• Business ownership - If either spouse starts a new business venture during their marriage or acquires an ownership interest in a business, the business will be considered marital property that may be divided between spouses in the case of divorce. This can raise concerns about whether the business will be able to remain operational, which may also affect the income-earning potential of the business owner. To protect a business from dissolution, a postnuptial agreement can specify how the spouses will divide business assets if they get divorced, such as by stating that one spouse will retain ownership of the business, while the other will receive other assets of a similar value.

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Couples have the option of creating a prenuptial agreement before they get married, but some never act on it. There could be several reasons for this, such as:

• Believing it is unnecessary given their level of personal assets
• Feeling uncomfortable with the idea of preparing for a hypothetical divorce
• Simply not thinking about getting a prenup or knowing what it is

Now that you have married, you still have the opportunity to create a postnuptial agreement. Like a prenuptial agreement, a postnuptial agreement can decide how you will divide your marital properties, define which properties are separate, and determine whether one of you will owe spousal maintenance to the other. If you did not feel a need to create a prenuptial agreement, you may ask why you would want to create a postnuptial agreement. There are several financial factors that could cause you to change your mind on creating an agreement:

1. You Have Started or Grown a Business: Many couples begin their marriages owning few valuable assets. Starting a successful business or practice means that you now own valuable property. Businesses that are created or see growth during a marriage are considered marital property. During a divorce, your spouse would have a right to an equitable share of your business. With a postnuptial agreement, you can state that you would keep complete control of the business in the event of a divorce.
2. You Stopped Working During Your Marriage: It is common for a spouse to take time off from work in order to raise children. Even if you did not leave your job, you may have reduced your hours or passed up opportunities for career advancement, which makes you more reliant on your spouse’s income. You would be entitled to spousal maintenance if you divorced, and it may be easier to negotiate the maintenance amount now in a postnuptial agreement than during a divorce.
3. You Received an Inheritance: People can suddenly come into possession of valuable properties, such as when they receive an inheritance from a family member. Inheritances are not marital properties when they are gifts meant for one person. However, the longer you possess the inheritance, the more likely it is that it will mingle with your marital properties. A postnuptial agreement can define which properties make up your inheritance.

Contact a Naperville, Illinois, Family Law Lawyer

Creating a postnuptial agreement does not have to be an awkward experience. At Calabrese Associates, P.C., we work with many couples who have decided to make a prenuptial or postnuptial agreement for practical reasons. To schedule a consultation with a DuPage County family law attorney, call 630-393-3111.

Creating a postnuptial agreement seems like a sign of weakness in a marriage. Why would you need an agreement that prepares you for a potential divorce if your marriage is strong? A postnuptial agreement is a practical document that you should create when you and your spouse are cooperating. Having a postnuptial agreement means you recognize that you could divorce and that you may disagree on what to do with your assets at that time. Instead of a weakness, negotiating a postnuptial agreement can be healthy for your relationship:

1. You Are Discussing Your Finances: Financial struggles and disagreements cause marital conflict that can lead to divorce. You may have financial concerns but are avoiding a conversation with your spouse because it is stressful. Ignoring the topic will not make the problem go away. Negotiating a postnuptial agreement forces you to talk to your spouse about your finances.
2. You Discover What You Disagree About: You may have a different philosophy about spending and saving than your spouse. Your negotiations are your chance to say that you are concerned about your spouse’s spending choices and how they may hurt your marital assets. Your spouse may have his or her own concerns about your spending habits. You can plan so that you both would have enough assets to support yourselves in case of a divorce.
3. The Negotiations Encourage Honesty: Even when together for several years, you may not know all of the assets your spouse owns or how much money he or she earns. It is appropriate for you to ask your spouse for details about his or her finances during the negotiations. Your postnuptial agreement would be invalid if your spouse hid significant assets from you. Believing that your spouse is not hiding anything from you will improve your trust in your marriage.
4. You Are Working Together Towards Solutions: Creating a good postnuptial agreement requires finding compromises for complicated financial issues. You want an agreement that is fair to yourself and your spouse. By the end of the process, you will have gained experience in cooperating with your spouse to solve difficult situations.

Worthwhile Process

You may never need to use your postnuptial agreement but will be happy that you created one if you ever divorce. The agreement saves you time by settling some of your divorce’s most contentious issues in advance. A DuPage County family law attorney at Calabrese Associates, P.C., can help you make a postnuptial agreement or review an existing agreement. Schedule a consultation by calling 630-393-3111.

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Postnuptial agreements are often grouped in the same discussions as prenuptial agreements. Both are legal documents that help spouses predetermine the terms of a hypothetical divorce, including:

• Defining marital and nonmarital properties;
• Determining how marital properties would be divided;
• Protecting spouses from nonmarital debt; and
• Setting the expectations for spousal maintenance.

By definition, the difference between a prenuptial and postnuptial agreement is that postnuptial agreements are reached after the spouses have married. Spouses may opt for a postnuptial agreement if it is too late to create a prenuptial agreement or they need to change the prenuptial agreement. However, spouses can have different reasons for creating a postnuptial agreement than they would for a prenuptial agreement.

Changing Relationship