A postnuptial agreement functions like a prenuptial agreement. The only real difference is when the two parties signed the document. For example, couples enter into prenuptial agreements before they get married. When they want the benefits of a prenup but are already married, they can choose a postnup instead.
Your postnup agreement allows you and your spouse to decide how to handle your finances, businesses and assets in general. If divorce arises, the terms you include in your agreement can also ensure a smoother property division process.
4 divorce scenarios that a postnup may help resolve
It is safe to say that not all Santa Fe, New Mexico, couples feel they need a postnup. However, there are several divorce scenarios when such an agreement offers critical protections. Examples include:
- You had kids before marrying. If you have children from a prior marriage, the terms of your postnup can ensure their financial protection.
- You have wealth. A postnup can protect the property or assets you owned before marriage if you end up divorcing.
- You own a business. Without protection, your business assets could be at risk if the need for divorce arises.
- You inherited significant cash or assets. A postnup could ensure you do not have to split a large inheritance with your spouse if you end up getting divorced.
As you can see, marital agreements – both before and after marriage – offer many different financial benefits. They also have the extra advantage of removing many areas of dispute for those seeking a divorce. If you are interested in creating a postnuptial or prenuptial agreement, we recommend learning more about New Mexico family law.