The prospect of splitting up property in divorce is a stressful reality for many couples, particularly those who have significant assets to lose in divorce. Those who stand to lose a lot in divorce don’t have to sit back and allow it to happen, though. There are steps that can be taken to protect assets from division in divorce.
One popular way of doing this is to negotiate a prenuptial agreement. These agreements have become more popular in recent years, even among couples with more modest wealth. Many couples, however, do not realize they have a need for property agreement until they are already married and some event triggers the consideration.
Increasingly, married couples are making use of postnuptial agreements as a way to protect their assets in divorce. Such agreements are struck not before the wedding but afterward. Typically, couples use them to establish terms for property division in divorce or how assets are to be disposed of at death.
There are various reasons why couples would choose to negotiation a postnuptial agreement. In many cases, according to attorneys who work in the area of family law, postnuptial agreements are suggested in order to punish one partner’s misconduct or to shore up a weakened relationship. In some cases, postnuptial agreements are used to alter terms found in a prenuptial agreement, or to avoid having the marital agreement conversation before marriage.
Whatever reasons a couple might have for considering a postnuptial agreement, it is critical to work with an experienced attorney in the negotiation process. We’ll say more about this in our next post.