One of the more stressful aspects of a marriage is the intertwining of financial assets. If individuals engage in big risks, such as borrowing money or accumulating other types of debts, then it might be in their best interests to draft a postnuptial agreement.
For example, if one spouse wants to borrow a significant amount of money to start up a business and the other spouse does not want to share in the debt that is created should the business fail, a postnuptial agreement can be drafted to shield one spouse from the debt burden in the event of a divorce. Additionally, postnuptial agreements can benefit spouses who already owned the business prior to the marriage. In these circumstances, postnuptial agreements can protect both the accumulation of wealth and debts.
Situations in which one spouse engages in lavish spending are often common in postnuptial agreements. Postnuptial agreements can offer the benefit of reducing anxiety around debt accumulation and can offer at least one spouse protection from the burden of being in debt.
Another common example is in which one spouse receives a large inheritance and wants to invest it in an existing family business, but he or she wants to ensure that if there is a divorce the value of the inheritance will be protected. These are commonly drafted in order to help familial relationships outside of the marriage and ensure the person granting the inheritance that their assets will be given to the intended recipient. This type of agreement is often helpful for easing the stress of family members as they can ensure that their inheritance will stay within the family.
A postnuptial agreement can also be drafted so that real estate and community property is divided equitably rather than equal split, as prescribed by California law. This ensures that the property will be divided per the wishes of the spouses at the time of drafting the agreement, as opposed to in the middle of a contentious divorce.
Another situation in which a postnuptial agreement might be the best choice is when affairs or significant stress affect the stability of a marriage. It’s important to remember that this decision does not mean that the couple is giving up their marriage, but is taking necessary steps to ease the burden of an uncertain financial future.
A postnuptial agreement can help ease the apprehension of a potential divorce and can help couples focus on making progress in their marriage. If the marriage does not end up working out, then couples who draft the postnuptial agreement often find that the divorce proceedings are significantly less contentious and timely.
Postnuptial agreements are commonly drafted by individuals who have children from a prior relationship. Postnuptial agreements are perfect for people wishing to protect their children’s financial future and can often benefit both parties in these types of situations.