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How can a postnuptial agreement save me money?

On Behalf of | Aug 14, 2020 | High-net Worth Prenuptial And Postnuptial Agreements |

When marrying, especially for the first time, many people feel like a prenuptial agreement might kill the romance. Others believe it might jinx the marriage. There are also many people who desperately want a prenuptial agreement but did not know how to broach the topic with their partners. Regardless of your reasons for not getting a prenuptial agreement — and sometimes, even if you have one already — postnuptial agreements might save you money. 

Unfortunately, roughly half of marriages end in divorce, so it is only wise to determine early on what to do if the marriage fails. In most cases, the best time to do this is before bad feelings develop. To add to this, as circumstances in the marriage change, you might wish to update the agreement. 

What is a postnuptial agreement?

A postnuptial agreement is just like a prenuptial agreement, but couples sign it after marrying. ABC News explains that this legal contract determines how couples handle their financial affairs in the event of separation or divorce. The document might include child support, spousal support and how to divide debts. People in civil unions also often use postnuptial agreements. 

How can it save us money?

When couples cannot agree on the divorce terms, they could spend years in court battling it out. Both sides might hire attorneys and end up squandering a significant portion of the marital property in the courtroom. By determining finances in the beginning, before marital problems arise or worsen, couples might manage to avoid the future, expensive court battles. 

How can I talk to my partner about it?

If you are still worried about breaking this suggestion to your partner, start by considering your compromises. Many people enter postnuptial agreements aiming to protect themselves. Even if this is your intention, start off by providing favorable terms for your spouse. Show that you are serious about making the marriage work, even though you also find it prudent to plan for other possibilities. This might increase the possibility of cooperation.