Postnuptial agreements, just like prenuptial agreements, are legal documents that outline the terms and conditions of asset division and spousal support in case of a divorce or separation. However, postnuptial agreements are drafted sometime after the marriage has already taken place. In this article, we will outline what should be included in a postnuptial agreement.
Assets and Debts
One of the primary reasons for drafting a postnuptial agreement is to determine how joint assets and debts will be divided in case of a divorce. This agreement should clearly define all the assets and debts in possession of both parties, including but not limited to bank accounts, retirement accounts, investment portfolios, properties, and vehicles.
Another crucial aspect of a postnuptial agreement is spousal support, which determines the amount one spouse will pay to the other for their financial support after the divorce. The agreement should specify whether spousal support will be paid as a lump sum or in installments, the duration of payments, and the amount to be paid.
Child Custody and Support
If the couple has children, a postnuptial agreement should also outline how child custody and child support will be handled in case of a divorce. The agreement should specify the custody arrangement, including where the children will reside and the visitation schedule of the non-custodial parent. Additionally, the agreement should determine the amount of child support and who will pay it.
Inheritance and Estate Planning
The agreement should also address inheritance and estate planning. It should specify how inheritance and estate assets will be distributed in case of a divorce, especially if one of the spouses brought significant assets into the marriage. Additionally, it should outline the terms if one spouse dies, including who will inherit their assets and who will be responsible for their debts.
Finally, a postnuptial agreement should outline dispute resolution procedures. Should a disagreement arise, the agreement can provide ways for resolving disputes, including mediation and arbitration.
In conclusion, a postnuptial agreement is an essential document for couples who have already tied the knot but want to ensure their finances and assets are protected in case of a divorce or separation. Addressing the aspects discussed above in your postnuptial agreement will provide clarity and peace of mind for both parties. Consultation with an experienced attorney is always recommended when drafting a postnuptial agreement.