A Prenuptial Agreement is simply a practical consideration of the legal and financial issues which should be considered by any couple prior to marriage. If properly drafted, it provides peace of mind that your interests are protected in the event of a divorce. Particularly for individuals or couples who bring significant wealth to the marriage or where one party brings a lot of debt, a premarital agreement isolates those assets and liabilities and streamlines the legal process. In most cases, this is a very positive process which allows both parties to clarify and consider a range of important issues and agree on what actions they should take if certain circumstances occur.
A postnuptial agreement is a legal contract signed after a couple enters a civil union or marriage. It dictates how the couple’s financial affairs and assets will be divided in the case of divorce or separation. Postnuptial agreements can spell out the division of all property acquired individually and together from both before and after the marriage. This document can also include details about incurring debts and spousal or child support.
There may be many reasons for married couples to consider a postnuptial agreement. Some of the most common are in cases of second (or third) marriages with children from a previous marriage where parties may want to ensure that some assets go to their children, if one spouse steps out of the workforce to spend a significant amount of time caring for children in order to ensure financial security in the event of a divorce, or in cases where the financial status of either spouse has significantly changed.