5 Reasons to Make a Postmarital Agreement

While prenuptial agreements are often discussed before marriage, many couples do not realize that a postmarital agreement, a postnup, can be just as valuable, even after the couple is married. A postmarital agreement is a legal contract created between spouses after marriage to define how assets, debts and other financial matters will be handled in the event of divorce or death. Whether for financial clarity or peace of mind, here are 5 reasons couples may want to consider creating a postmarital agreement.

1. To Protect Individual Assets

Many couples enter marriage without a prenup, but situations can change over time. If one spouse inherits significant wealth, acquires a business or accumulates valuable assets after marriage, a postmarital agreement can ensure that these assets remain protected. This is especially important if the couple lives in a community property state where assets acquired during the marriage are typically considered shared unless otherwise specified. A postnup can outline which assets will be considered individual property and which will remain part of the marital estate in case of divorce or death.

2. To Clarify Financial Responsibilities

Financial issues can be a source of tension in any relationship, but marriage can amplify them, especially if one spouse brings more debt or income into the relationship than the other. A postmarital agreement allows couples to outline how financial responsibilities will be divided during the marriage including how debts will be paid and how income will be shared. By clearly outlining these financial expectations, a postnup can ensure both partners are on the same page regarding their financial roles and responsibilities.

3. To Address Changes in Circumstances

Life is unpredictable, and circumstances can change drastically after marriage. Whether one spouse leaves the workforce to raise children, one partner starts a business or the couple experiences a dramatic shift in their financial situation, a postnup can address these changes. For instance, a spouse who sacrifices their career for the family may want to ensure they are compensated fairly in the event of a divorce. Postmarital agreements can be renegotiated as circumstances evolve as long as both parties agree. 

4. To Safeguard Children from a Previous Marriage

For people entering a marriage with children from a prior relationship, ensuring that those children are protected financially is often a top priority. A postmarital agreement can specify how assets will be divided to provide for children from previous marriages, ensuring they receive the inheritance intended for them. This can be particularly important for benefits to which a spouse otherwise would be entitled in the absence of a marital agreement, such a benefits governed by ERISA. 

5. To Strengthen the Marriage

Though postmarital agreements are often seen as planning for divorce, they can actually strengthen a marriage by opening communication about financial matters. A postnup can help both partners feel more secure and in control of their financial future. By discussing financial goals, expectations and concerns, couples can work through potential issues and reach a mutual understanding that strengthens their bond. A postmarital agreement can also provide peace of mind. Both spouses can feel reassured that they have legal protections in place, which can reduce anxiety and contribute to a more stable relationship.

If you need a post-marital agreement in Colorado, please contact the attorneys at Brown Law Firm to start the conversation at 303-339-3750.