Better Late Than Never – How a Post-Nuptial Agreement Can Help Your Marriage
Many couples decide to sign a prenuptial agreement before they marry. These agreements are designed to protect a spouse who brings property into a marriage and is concerned that the property might be viewed as marital property should the parties divorce.
However, many people whose interests would be served by a prenup do not ask for one before the marriage, because they worry that their intended spouse will see it as a sign that the marriage might not be permanent. Others simply do not take the time to negotiate and sign a prenup because they were overwhelmed with planning their wedding.
Even if you realized only after the wedding that a prenup would have been a good idea, all is not lost. An increasing number of couples have signed post-nuptial agreements, which are entered into during the marriage. A postnup can allow the parties to make exactly the same kinds of promises and conditions that could have been established by a prenup.
What is a Postnuptial Agreement?
A Postnuptial agreement is a written contract between the couple after they are married. The primary purpose of this contract is to settle the couple’s affairs in case of separation or divorce. These are a few trigger events that should make you consider signing a postnuptial agreement:
- You planned on signing a marital agreement before your marriage but could not follow through.
- Your spouse decides to take on a significant financial risk in a new investment or business venture.
- Your spouse exercises or exhibits financially irresponsible behavior.
- Unexpected financial circumstances compel you and your spouse to agree on a postnuptial marital agreement.
- If there are children from prior relationships.
- To ensure either spouse’s inheritance is protected and defined.
- You did not want to discuss marital terms while planning your wedding.
- There is a significant change in either spouse’s financial situation following the marriage.
Why might I want to sign a postnup?
These are a few key ways in which postnuptial agreements can help a marriage:
- Fomenting communication
It can be difficult to talk about financial issues, such as debt, inheritance, and property division. You may actually be able to facilitate communication by creating a postnuptial agreement. This will encourage your spouse to be open to dialogue, negotiate, and cooperate with each other.
Spouses can set clear expectations by keeping lines of communication open on uncomfortable subjects. It can help in defining both separate and shared financial goals and putting in place important boundaries. All of this can be helpful in avoiding conflict and dealing with financial matters.
- Avoiding financial conflicts
Even though it may seem counterintuitive, creating a postnuptial agreement can play a vital role in strengthening your marriage rather than weakening it. Conflict is bound to happen when spouses have different expectations regarding financial issues, have different spending habits, and are not completely honest about money matters.
You may be able to identify areas of conflict by creating a postnuptial agreement. This will also help you find productive ways of addressing these conflicts. In addition, if either spouse lacks financial responsibility, this can help them alter their destructive behavior.
- Preventing a messy divorce
Postnuptial agreements can help couples avoid bitter conflicts over money in case of a divorce. It offers peace of mind and allows both spouses to have financial security. Postnuptial agreements should not be treated as “preparation” for divorce or eventual death. These agreements address and regulate a vast majority of issues faced by couples when fighting or negotiating the terms of a divorce.
Therefore, you would know exactly where a divorce is headed before the proceedings start. This insight into the future allows couples to keep their differences aside and work together in a more harmonious manner. Sometimes, not fearing the future can lend a fresh perspective to things.
Postnuptial Agreements and Financial Investments
Postnuptial agreements address all types of marital and separate property, including bank accounts, real estate, 401ks, and financial investments. If you make financial investments without a marital agreement in place, you may need to divide and share the investments with your spouse in the event of a divorce.
This can be stressful for any marriage that is going through a brief period of strife. You can avoid overcomplicating issues by removing any apprehensions regarding the financial aspect of things. In the same manner, you can alleviate any fears of potential investment risks taken by your spouse through a postnuptial agreement.
Does Alabama law allow for post-nuptial agreements?
Alabama law has a presumption that post-nuptial agreements are usually valid. Several sections of the Alabama code assume the validity of agreements entered into between a husband and wife during the marriage. In addition, in 1989, the Alabama Supreme Court held that an agreement allowing a wife to give up her share in her husband’s estate in exchange for other property was valid.
On the other hand, Alabama law sees any agreement between a husband and wife as one in which the parties have a fiduciary relationship. All agreements must be made with full disclosure of all relevant information. If it is discovered later that one party did not fully disclose their financial situation, the court can decide to invalidate the agreement.
As in the case of a prenup, a spouse who is presented with a proposed postnup should make sure that they understand the agreement. It is always a good idea to consult with an Auburn Opelika Family law and divorce attorney who is experienced in family law matters, before you sign a postnup, rather than relying on the advice of your spouse and his or her lawyer.
