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What are postnuptial agreements?

| Feb 26, 2021 | Divorce

A postnuptial agreement is the same as a prenuptial agreement except that it gets put together during a marriage instead of before the wedding. The purpose of this agreement is to determine how your financial assets will get split up in the event that a divorce takes place. A postnuptial agreement can protect you, your partner and your assets, so there are a multitude of reasons to consider drafting one in California.

Children from previous marriage

If you have children from a previous marriage, a postnuptial agreement can ensure that those children will get protected in the case of your untimely death. If you were to pass away, there is a chance that your assets might go to your spouse’s children instead of your own. This is why putting together a postnuptial agreement can ensure that all of your children will get taken care of.

Protecting your business

If you own a business, a postnuptial agreement will ensure that you retain ownership of the business in case of a divorce. Without an agreement prior to a divorce, it is possible that your partner can acquire a percentage of your company and receive payments based on the company’s profits. This is also the case if you come into a large inheritance; your ex-spouse could potentially claim a portion of that inheritance for themselves even though it is specifically for you.

Benefits to a marriage

By laying out how things will get divided in the case of a divorce, this could potentially improve your marriage because both parties will understand what they are losing if the marriage does not work out. It gives you the opportunity to communicate and be clear about your finances.

Postnuptial agreements benefit both parties in many ways and can ensure that assets get divided equally if you decide to end the marriage. An experienced family law attorney may help analyze the assets of both parties and put together an agreement that would result in a fair divorce settlement.