While no one should enter into a marriage expecting divorce to occur, planning for the worst remains a smart move. Whether you have gone through the marriage process or expect to do so soon, there remain options for you and your partner.
Prenuptial and postnuptial agreements, often referred to as prenups and postnups, have a lot in common with a few important differences.
What is a prenuptial agreement?
You may also hear a prenuptial agreement referred to as a premarital agreement. As you might expect, this agreement happens before two people enter into a marriage. In the form of a legal contract, you and your future spouse decide how assets should divide. This document helps determine whose assets belong to who both during the marriage and in the event of a divorce.
What is a postnuptial agreement?
Like a prenup, a postnuptial agreement takes the form of a contract outlining the division of assets and potentially other important decisions or aspects of a marriage. Unlike a prenup, a postnup’s creation occurs after marriage. This makes these contracts an option for married partners who would like arrangements like those found in a prenup.
Are prenups and postnups always legally binding?
Both prenups and postnups potentially change or even complicate how the division of assets during a divorce occurs. With either type of contract, there remain circumstances where they may not hold up or remain valid in court.
For a lot of married or soon-to-be-married individuals, postnups and prenups create opportunities for both people to protect their assets and interests. Proper research helps you and your partner ensure that your contract works as intended.