7 Reasons You Should Get a Postnuptial Agreement

Most people are familiar with prenuptial agreements and how they function. However, it’s important to understand that if you and your spouse did not sign a prenup before you were married, you still have the opportunity to enter into a postnuptial agreement. These contracts can be signed at any point during your marriage and can address a wide range of financial issues — as well as protect your economic interests in the event of divorce.

Here are seven reasons you should consider a postnuptial agreement:

1. You Would Like to Clarify Financial Expectations

A postnuptial agreement has a significant advantage over prenuptial agreements — these contracts can be entered into at a time when spouses have more knowledge regarding their marital finances. They may be better informed about their financial needs than they were prior to the marriage. Importantly, a postnuptial agreement can be used to help spouses clarify financial expectations and reduce misunderstandings by encouraging them to have an open and honest discussion about money and property matters.

2. You Have Received an Inheritance

If you have received a large, unexpected inheritance, it’s vital to take the necessary measures to protect it. While inheritances are treated as separate property in Maryland, they can sometimes become commingled with marital property — this can complicate asset division in cases where a couple parts ways. An inheritance can be included in a postnuptial agreement to ensure that it remains the property of the spouse to whom it was bequeathed.

3. You Have Brought Significant Assets into the Marriage

If you entered into the marriage with significant assets or acquired them during the marriage, a postnuptial agreement can help to protect your wealth in the event of divorce. This would ensure that spouses part ways while keeping the individual wealth they have accumulated intact.

A postnup can address a wide range of assets and property, including but not limited to the following:

• Real estate
• Investment properties
• Investment portfolios
• Retirement funds
• Personal property
• Vehicles
• Artwork
• Jewelry
• Family heirlooms

A postnuptial agreement can also address many other financial matters, such as how debts accumulated during the marriage would be handled, whether spousal support would be issued in the event of divorce, how certain properties would be managed, and who would be responsible for attorneys’ fees in divorce.

4. You Own a Business

If a spouse owns a business, dividing it in divorce can be one of the most contentious issues you may face during legal proceedings — especially if the business grew substantially during the marriage. Significantly, a postnuptial agreement can protect business interests by:

• Classifying business assets as separate property that remain with the original owner after divorce
• Preventing disruption to your business after divorce
• Specifying how the business will be managed
• Protecting the interests of business partners
• Outlining each spouse’s financial responsibility and obligations toward the business
• Reducing the potential for lengthy and costly litigation

With a solid postnup in place, you can continue to focus on your company’s growth and operations without concern that divorce proceedings could interfere. In addition, it can also show lenders that your company is a stable investment.

5. You Would Like to Financially Protect Children from a Prior Marriage

If you have children from a previous marriage, a postnuptial agreement can be used in connection with your estate plan to ensure your children are provided for. By specifying which assets are considered separate property and how they should be distributed in the event of divorce or death, the assets can be safeguarded for your children. The agreement can address things such as money inheritances, financial accounts, family heirlooms, and other assets that you would like passed down to your children.

6. There are Unexpected Financial Imbalances in the Marriage

Not all financial issues in a marriage can be addressed in a prenuptial agreement. In some cases, there may be unanticipated events or unexpected financial imbalances that arise during the course of a marriage. For example, if one spouse takes on homemaking or child raising responsibilities while the other spouse seeks employment outside the house, the financially dependent spouse might want to seek assurance by addressing alimony issues in a postnuptial agreement.

7. You Did Not Enter into a Prenuptial Agreement

If you didn’t enter into a prenuptial agreement before you were married — or did and financial circumstances have changed — a postnuptial agreement can be used to protect your interests. In the event divorce is imminent, a postnuptial agreement can safeguard your separate property, establish the division of assets without judicial intervention, and help spouses avoid litigation.

Contact an Experienced Maryland Divorce and Family Law Attorney

There can be a wide range of reasons to enter into a postnuptial agreement. A skillful attorney can draft, review, and negotiate a postnuptial agreement that will be legally sound if you and your spouse choose to part ways. At the Law Office of Shelly M. Ingram, our Fulton, Maryland divorce attorneys are committed to providing you with high-quality legal services for a wide variety of divorce and family law matters, including those involving prenuptial and postnuptial agreements. Trained in collaborative divorce, mediation, and traditional divorce litigation strategies, we will help you achieve a positive outcome for your specific situation.

To schedule a confidential consultation with an experienced Maple Lawn divorce attorney, call us at (301) 658-7354 or contact us online.