Life rarely stays the same after your wedding day. You might start a business, receive an inheritance or welcome children into your family. As those changes happen, you and your spouse may find that the financial plans you made when you married no longer fit your lives today.
A postnuptial agreement is a legal agreement created after marriage. While many people associate these agreements with marital conflict, they can also help you and your spouse address financial issues after major life changes.
When life changes after marriage
Certain events can raise new questions about property, finances and long-term planning. Some common examples include:
- Starting or buying a business during the marriage
- Receiving an inheritance or valuable family property
- Experiencing a substantial change in household income
- Leaving a job to care for children or another family member
- Raising a blended family with children from previous relationships
These changes do not automatically mean you need a postnuptial agreement. They can, however, prompt you and your spouse to decide how to handle certain assets, debts or financial responsibilities.
How a postnuptial agreement can help
A postnuptial agreement allows you and your spouse to put financial decisions into writing after your circumstances change. It gives you and your spouse an opportunity to decide together how to handle certain issues while you both agree.
Depending on your situation and what the law allows, a postnuptial agreement may address property ownership, responsibility for certain debts, business interests acquired during the marriage or financial obligations between spouses. State law sets requirements for these agreements, and whether one will be enforceable depends on the facts of each case.
When a postnuptial agreement may make sense for you
If your family or finances look different than they did when you married, it may be worth learning how a postnuptial agreement works. A new business, valuable property or changing family responsibilities can all influence how you and your spouse want to manage your financial affairs.
Knowing what a postnuptial agreement can and cannot do under state law can help you determine whether it fits your family’s goals and plans for the future.