The Benefits of a Postnuptial Agreement
Posted in Prenuptial Agreements on February 4, 2025
Hopefully, you won’t ever have to worry about hiring a divorce lawyer in Carlsbad, CA, to seek a legal split from your spouse. However, if you do, it will help to have a postnuptial agreement.
This agreement, also known as a “postnup,” is a legally binding document determining how a married couple’s assets and debts will be distributed if they divorce. It’s similar to a prenuptial agreement, or “prenup,” with the major difference being that a couple creates one after marriage rather than beforehand.
So, what are the biggest benefits of a postnuptial agreement? Find out below and decide whether you and your spouse should implement one.
Offers Clarity on Who Is Entitled to Assets Acquired During a Marriage
The average married couple will acquire quite a few assets throughout their union. They might:
- Buy a house and other real estate together
- Invest in vehicles and other types of transportation (motorcycles, boats, etc.)
- Create retirement plans and other financial portfolios
They often do this without considering who will take ownership of these assets if they divorce. This may create complications if their marriages don’t last.
One of the biggest benefits of a postnuptial agreement is that it eliminates much of the guesswork when married couples divorce and start trying to split up their assets. This agreement will explain exactly how couples should divide their assets as they separate.
Reveals Who Is Responsible for Debts Racked Up Throughout a Marriage
According to a 2024 survey, more than half of couples go into debt while paying for their weddings. They foot the bill for their wedding costs using credit cards and personal loans and enter their marriages with debt hanging over their heads from the start.
Many couples continue to rack up additional debt from there. This typically puts a strain on their marriages and causes problems for those who choose to call it quits and divorce down the line.
Another worthwhile benefit of a postnuptial agreement is that it clarifies who is ultimately responsible for the debts married couples take on. It will showcase which parties walk away from marriages with which debts and ensure divorce proceedings don’t drag out due to lingering debt issues.
Breaks Down a Married Couple’s Business Ownership Terms and Conditions
More American couples own businesses together than many people realize. The U.S. Census Bureau reports that about 10% of married couples own and operate businesses jointly.
If your marriage falls into this category, the benefits of a postnuptial agreement will go beyond simply spelling out whether you or your spouse will exit your marriage with certain assets and debts. This agreement will also unveil the business ownership terms and conditions you and your spouse will abide by after a divorce.
For instance, you and your spouse might agree to continue to run a business together despite your circumstances. You might also agree to sell the business collectively and split the proceeds. You may even agree that one of you will pay the other to take total ownership of a company.
Whatever the case, you shouldn’t leave something as critical as business ownership blowing in the breeze when you’re married and regret it later. Utilize a postnup to determine how a divorce will change the ownership structure of your business so you aren’t stuck trying to hash it out in the future.
Clears Up Confusion Over Inheritance-Related Matters Involving a Married Couple
Up to 40% of American households collect inheritances at some point. You may receive an inheritance if a grandparent, a parent, or a close family member or friend dies during your marriage.
If this inheritance was left to you and your spouse, you will both be entitled to any compensation included. However, complications may arise if only you or your spouse were awarded an inheritance following a loved one’s death.
In this case, you may want to use a postnup to clear up any confusion over who is entitled to this inheritance. Otherwise, you may find yourself stuck in a legal stalemate during a divorce if you or your spouse attempts to claim a portion of an inheritance.
Sets Up a Married Couple’s Beneficiaries From Previous Relationships With Security
More Americans are remarrying these days than ever before. About 42 million people have been married more than twice, nearly twice the number who were remarried just half a century ago.
Because of this, many married couples share custody of children from previous relationships. These couples must protect these beneficiaries just in case something happens to them.
Married couples with children from previous relationships may use postnuptial agreements to spell out their wishes for them. For example, they might request that specific assets, like family heirlooms, end up in the hands of these beneficiaries.
Extends Enough Flexibility To Allow a Married Couple To Make Changes Over Time
“Is a prenup or a postnup a better option?” is a question that some couples will ask before walking down the aisle. Comparing a prenup vs. postnup should help you decide whether to secure a prenup before being married or wait until you’re married to sign a postnup for protection.
You’re welcome to choose either option, as each has its benefits. However, many married couples appreciate the flexibility postnups provide, making it one of the leading benefits of a postnuptial agreement.
After creating an initial postnup, you can return to it and make as many changes as you want in the coming years. You may want to do so when you and your spouse:
- Buy and/or sell a house
- Have a child or children
- Start or close a business
Provides Peace of Mind for a Married Couple
As you’ve seen, postnuptial agreements offer many benefits, but this might be the biggest one of all. Signing a postnup with your spouse will provide unprecedented peace of mind.
Neither of you will need to devote any time to stressing out over possibly being left with no assets and/or a mountain of debts if your marriage doesn’t work out. You will have a solid understanding of how the dissolution of your marriage will affect you from a financial perspective. This will leave you feeling better about landing on your feet if your relationship fizzles out.
Ideally, you and your spouse will stay together forever and avoid ever having to pull out a postnup. Still, it will be nice to know you have one in place should the need arise somewhere down the line.
Contact Us To Begin Working Closely With a Postnuptial Agreement Attorney
Now that you know the benefits of postnups, would you like to begin putting one together? Instead of writing your own postnuptial agreement, work with a trusted attorney who will assist you in taking the proper steps while coming up with it. They will ensure you don’t forget to include any crucial information in a postnup and simplify the process of creating one from scratch.
Ratzer | Dobis is here to help those married couples who wish to take advantage of the many benefits of a postnuptial agreement. Call us at (858) 793-7700 today to start working with a dependable lawyer as you and your spouse iron out a postnup you each agree with.