A postnuptial agreement (also known as post marital) is a voluntary marriage contract between spouses that is created after their wedding. It’s utilized and prepared after the parties have already married but before they have separated. It’s similar with prenuptial agreement. There are various reasons for choosing a post-nuptial agreement instead of agreeing to a contract in advance.

One reason for utilizing a postnuptial agreement may be that circumstances will change drastically shortly after the couple gets married.

Another reason to create a postnuptial agreement is if the financial status of either spouse changes after their wedding. Changes in a career, receiving an inheritance, experiencing a change in investment income, selling a business, etc. are all valid reasons to want a postnuptial agreement.

For some couples a postnuptial agreement can stop conflict and promote harmony in their marriage.

There are three criteria that judges use to determine the validity of a postnuptial agreement:

1.         Has there been full disclosure of assets in the postnuptial agreement?

2.         Has there been a lack of duress in the creation of the postnuptial agreement?

3.         Is the postnuptial agreement fair to both parties?

Factors to Consider

1.         Discuss all the assets and debts of your relationship as well as future income opportunities.

2.         Discuss the current financial status of your relationship including spending habits, roles and responsibilities and any concerns you have over money matters.

3.         Be open and honest about your assumptions and expectations of how property would be handled in the case of death or divorce. Draw up and sign the agreement with the help of two lawyers. It is critical that you are each represented independently to maintain the contracts legal validity.

4.         Revisit the contract periodically, especially if your lifestyle or financial status changes drastically. If you move to a different state, check to make sure the laws or legal precedents don't affect the status of your contract.

Key issues to be included in A Prenuptial Agreement

1.         List all assets, liabilities, income, and expectations of gifts and inheritances.

2.         Describe how post-marital debts will be paid.

3.         Resolve what happens to your post-marital property in reference to appreciation, gains, income, rentals, dividends and proceeds of such property- in the event of death or divorce.

4.         Resolve what happens to your post-marital property in the event of death or divorce.

5.         Decide who, or if both of you, will own the marital residence and secondary homes in the event of death or divorce.

6.         Specify the status of gifts, inheritances, and trusts either spouse receives or benefits from, whether before or after marriage.

7.         Clarify what will happen to each type of property, whether jointly or individually owned, such as real estate, artwork and jewelry.

8.         Figure out alimony, maintenance, or spousal support, or provide for a waiver or property settlement instead of support (to the extent allowable by law).

9.         Detail death benefits, stating what you will provide for in your will.

10.     Decide on medical, disability, life or long-term-care insurance coverage.