You have probably heard of prenuptial agreements, which set terms in the event a married couple chooses to divorce in the future. These agreements cover things like spousal support, property and asset division, as well as other financial matters.
According to U.S. News & World Report, postnuptial agreements are becoming more common among married couples. Similar to prenups, postnups set the same terms but occur after the wedding has taken place.
How to tell if you need a postnup
Most people choose to develop a postnup when their marriage encounters difficulty. However, that is not the only reason to create one. Maybe you decided to open your own business and want to safeguard your assets. They are also created after one spouse received a large sum of money, such as through inheritance.
You may develop one if you have children from a previous marriage and want to ensure they receive part of your estate after you die. They can also protect stay-at-home parents, who would lack the ability to support themselves after spending many years away from the workforce.
What to include in the document
All possible financial decisions that would arise during divorce should feature in your postnup. This includes whether a spouse will receive spousal support, as well as the amount of that support. Information on asset division is also crucial, as well as who is to cover legal costs in the event of a divorce.
While broaching the topic of a postnup is challenging, it is ultimately worth it to your relationship. These documents ensure you and your spouse are on the same page when it comes to financial divorce issues. They can also offer protection to both parties when developed correctly.