5 Reasons an Alabama Postnuptial Agreement May be Right for You
You’ve likely heard of prenuptial agreements, made before a marriage occurs to determine ownership of their respective assets in the event of a divorce. Postnuptial agreements achieve a similar effect, although they can occur at any point in a marriage. Postnuptial agreements are increasingly popular, Harper’s Bazaar even suggested that a postnuptial agreement may be the secret to a happy and healthy marriage. Below, are five reasons a postnuptial agreement may benefit you. If you have any questions about whether a postnuptial agreement may be right for you, reach out to Peeples Law to schedule a consultation.
5 Reasons You May Benefit From a Postnuptial Agreement:
- You and/or your spouse own a business that you want to protect. There are some things you may not think about prior to entering a marriage, like how your independently established business will be affected. If the business was started independently prior to the marriage, it should remain your independent property, however, without establishing that in a pre- or postnuptial agreement, there’s a lot that can go wrong. For instance, if your spouse ever helped you out with your business, or you used joint-funds for business reasons, it may end up being treated as marital property in a divorce. For this reason, many couples who are serious about their businesses are getting postnuptial agreements, both to protect their own interests, and to make sure their spouse feels supported in continuing to grow their business without the fear that half of it might be taken away. By protecting your business with a postnuptial agreement, you also protect all income and assets earned through it during the course of the marriage. Without such an agreement, your spouse will likely be entitled to a share of your earnings in a divorce.
- It allows you to bypass state law division of property rules. Without a pre- or post-nuptial agreement, your property must be divided in accordance with state laws on marital property. These laws can also require spousal support, and other things. Often, both partners feel much more comfortable and in control knowing what the situation will be from the outset, and arriving at an outcome that benefits and protects both of them.
- You or your spouse are receiving a large inheritance. Increasingly, beneficiaries are being asked to get a postnuptial agreement, to protect a family inheritance being bequeathed to them. Additionally, if you have already received a large inheritance, you still have the option to decide how that asset will be treated in a divorce by entering a postnuptial agreement. Often, couples negotiate a prenuptial agreement solely to deal with an inheritance.
- You have children from a previous marriage. A postnuptial agreement allows you to ensure that your children are provided for the way you intend for them to be. Otherwise, in the absence of a written agreement, it may be up to your spouse to determine if and how much they share with the children. Even if you trust your spouse completely, it can provide a great deal of peace to go through the process of negotiating the agreement, and ensuring that you are both on the same page.
- Makes it easy to deal with debt. Often, both partners bring some debt into the marriage, and it can become a real point of contention figuring out how they will be paid and who is responsible. Making a postnuptial agreement can really simplify this process, and is a discussion every couple will benefit from having. It allows couples to determine what debts exist and who is responsible for paying them. Couples even have the option of agreeing on payment schedules and timelines to ensure that they are working toward their shared financial goals.
Prenuptial or Postnuptial agreements can be as limited or broad in scope as your needs require. You can have multiple agreements. For instance, you may have one that deals with children, another that focuses on your business, and continue to add more as issues come up in the marriage that need to be clarified and discussed. These agreements can also be modified.
Schedule a Consultation
If you believe you may benefit from a premarital or postnuptial agreement, or would like to update an existing agreement, contact a Birmingham family lawyer at Peeples Law to schedule a consultation today.