Most people are familiar with a prenuptial agreement (prenup), which is a legal contract signed before a couple enters marriage. However, not as many people are aware of a postnup.
As the name suggests, a postnup happens after you have said ‘I do’. Despite the change in timeline, the overall aim is the same. The post-nup aims to clarify financial matters and obligations, in the event of divorce or separation.
In this article we are going to talk through ‘What is a post-nup’, when you might need one, and why it’s important to get a lawyer to draw up this document.
What is a Postnup?
A postnup is similar to a prenup, but it’s drawn up after the wedding has taken place. It outlines the division of assets, debts and other financial obligations, in the event of a divorce, separation or death. A postnup can also be used to establish/change financial expectations, such as spousal support.
The postnup is a legally binding contract that can help prevent future disputes, offering clarity if the marriage breaks down.
What’s Included in a Postnup?
The exact terms of the post-nup will be tailored to the couple’s specific situation and what they are looking to achieve. Some of the things that are often included:
- Asset division: How property, savings or investments will be split if the marriage ends.
- Debt responsibility: Who is responsible for any debts that have built up during the marriage?
- Spousal support: Setting guidelines for any ongoing support after the marriage has broken down.
- Business interests: Protecting a business or inheritance by keeping these separate from the general marriage assets.
- Estate planning: Talking about how assets will be distributed in the event of one spouse’s death.
Why Might You Need a Postnup?
There are several reasons you might want to arrange a postnup after marriage. One common reason is when one spouse has come into significant money or assets after the wedding. If the partners agree that those assets should be kept separate from the marital estate, they might arrange a postnup to stipulate this.
Another reason could be that one partner has set up a new business or made a significant investment. A postnup can clarify how ownership and profits, or any potential debts, would be allocated in the event of a split.
Why You Need A Lawyer
It’s important to instruct a qualified solicitor to draw up your postnup, to ensure it’s legally binding and enforceable. If you need to speak to experienced post-nuptial lawyers, get in touch with Fitz Solicitors.