What Types of Circumstances Warrant Considering a Postnuptial Agreement?
As attorneys who counsel countless clients in divorce and family law here in Florida, we regularly speak with a number of clients who are interested in prenuptial agreements (prenup”), especially now that couples are often getting married later in life when they have each acquired assets in some cases. However, not enough people understand just how valuable postnuptial agreements (“postnups”) can be as well; that they provide their own unique purpose when it comes to certain types of circumstances.
Below, we discuss some of the circumstances where a postnuptial agreement can be very helpful; indeed, sometimes serving as the only means of protecting certain interests for couples who are already married.
Sudden Changes in Financial Circumstances
Postnups can be helpful for individuals whose financial situation has suddenly changed dramatically. For example, perhaps a work product has drastically changed financial circumstances, or someone started a business during the marriage that has come to fruition. As one person described, it can be better to “give up 60 percent of 10 million now [rather] than 40 percent of a future 100 million.”
Clarifying Separate from Marital Property
Couples who work in real estate are also frequently interested in postnups because it is the best way to ensure that property that is acquired is kept separate; otherwise, things can become tricky. Without having everything spelled out in an agreement, it can sometimes become difficult to prove that a piece of property was not benefited from marital funds; for upkeep, maintenance, repairs, etc. A key part of placing some assets into protection trusts or entities is the postnup.
Providing for Individuals Outside of the Marriage
Some individuals who get a postnup also do so in order to ensure that family or friends outside of their marriage inherit certain assets, for example, individuals who have children from a previous marriage.
Protecting Your Retirement
Retirement is another huge concern for some couples, especially as the number of gray divorces – i.e. those after the age of 50 – skyrocket. Even some couples who signed a prenup find later on that any provisions that address retirement funds and assets are outdated, so a postnup is now necessary. For those who are concerned that they could end up with their retirement assets cut in half, and this could pose a serious challenge to their retirement, a postnup can help ease those concerns.
Postnups are also helpful for couples who are considering separation but are not ready for divorce. During this time, it can be beneficial to hash out what is separate versus marital property because a couple is still on speaking terms. Doing so can make divorce less expensive and difficult later on.
Contact Our Florida Family Law Attorneys to Find Out More
If you have any questions related to postnuptial agreements, contact the Orlando divorce attorneys at Greater Orlando Family Law. We are here to ensure that you and your family are taken care of.