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What Is a Postnup?
A postnuptial agreement, or “postnup,” is similar to a prenuptial agreement, but is a legal contract written and signed after a couple legally marries.
A postnup contract outlines how assets will be divided in the event of a divorce and may include various other provisions on marital conduct, such as how household chores will be shared, expectations around monogamy, or even the frequency of mother-in-law visits.
Postnups are honored and enforceable in most U.S. states.
Key Takeaways
- A postnup is similar to a prenuptial agreement but is written after a couple is legally married.
- One common reason for a postnup is to ensure financial security in the event of a divorce.
- A postnup usually concerns financial assets, but it can define anything—from how often in-laws visit to how a couple shares household chores.
- You may need or want a postnup if you have children from previous marriages or own a business.
- Not all states recognize a postnup, so consult with an attorney regarding martial contracts and divorce laws in your state.
Postnup Popularity
Postnuptial agreements have become common. One reason may be that negotiating prenuptial agreements can be too stressful. Couples can feel that the very act of contemplating divorce can doom a marriage from the start.
As a result, many couples instead opt for postnups to avoid awkward discussions about the division of assets before their happy day. Such negotiations might proceed more smoothly once the newlyweds have settled into their marital routine. They can also take place years into a marriage if an event raises a couple’s concern for the future financial stability of either partner.
Here are some signs you might need a postnup.
1. You and/or Your Spouse Is Wealthy
If one or both spouses bring significant assets into the marriage or anticipate a large inheritance in the future, a postnup can ensure that these assets remain separate in the event of a divorce. It helps to prevent the division of wealth that could otherwise be considered “marital property.” Divorce attorneys often recommend a postnuptial agreement for couples with substantial pre-marital wealth to ensure that both parties are treated fairly.
2. You Have Children From a Previous Marriage
In blended families, a postnup can define how assets are divided in the event of divorce or death, ensuring that children from prior marriages receive the inheritance you intend for them. Without such an agreement, your spouse might have automatic rights to a portion of your estate, potentially leaving your children with less than you intended. A postnup can also specify the distribution of joint property during a divorce.
Important
Some state laws dictate the division of joint property in cases of divorce. Before you sign a postnup, ask your lawyer about the relevant laws in the state in which you live or may relocate to.
3. You or Your Spouse Owns a Business
A postnup can protect the business’s assets and income if either spouse owns a business. Without a postnuptial agreement, a spouse may be entitled to a percentage of the business or its earnings in a divorce. A postnup can clearly define what happens to the business and whether it remains a separate asset or is considered part of the marital estate.
4. You Leave the Workforce to Help Your Spouse
One spouse might leave their job to support the other’s career, to raise children, or to care for family members. In these cases, a postnup can ensure that the spouse who sacrificed their career receives a fair share of the marital assets, acknowledging the imbalance created by giving up income-generating opportunities.
5. You Recently Received a Large Inheritance
Receiving a large inheritance can complicate a marriage, especially if there’s a potential for divorce later on. A postnup can help protect inherited assets, ensuring they remain the property of the person who received them. Without such an agreement, inherited assets are often considered joint property, potentially subject to division in the event of divorce.
How Is a Postnup Different From a Prenup?
The primary difference between a postnup and a prenuptial agreement is the timing. A prenuptial agreement is signed before marriage, while a postnuptial agreement is signed after the couple is married. A postnup can also address issues that arise after the marriage, such as financial windfalls or changing life circumstances.
Is a Postnup Better Than a Prenup?
A postnup might be preferable in cases where couples are not comfortable discussing a prenuptial agreement before marriage or if they feel a prenup is unnecessary. Postnups are also helpful when unexpected circumstances arise after marriage, such as receiving a large inheritance or a significant change in financial status.
Do I Need a Lawyer for a Postnup?
A lawyer isn’t required, but you may need and want one. You and your spouse can always start the discussion of a division of assets. But when drafting the actual agreement, legal experience and expertise most likely will be required (and is recommended) to ensure that both of you understand state laws, what’s being defined, legal aspects of the contract provisions, its enforceability, and more.
The Bottom Line
In certain marital situations, a postnup is strongly recommended for spouses who didn’t sign a prenup. Postnups are particularly beneficial when one or both partners have significant pre-marital assets and/or children from previous marriages.
Postnups can eliminate expensive and acrimonious divorce battles when marriages fail. If a marriage succeeds until death, a postnup can prevent inheritance disputes between a person’s surviving spouse and their heirs.
Working with a trusted lawyer can facilitate the relatively pain-free postnup contract creation process.