You might assume pre and postnuptial agreements are only for super wealthy celebrities, but this assumption can be harmful to your financial future. If you and your special someone ever separate, your property, debts and personal belongings, such as jewelry, might be at risk of property division. Perhaps you decided to forego a prenuptial agreement but are now worried about the outcome of a potential divorce.
This is exactly why post-marital contracts exist. A postnuptial agreement is essentially the same thing as a prenuptial agreement, except it is created and signed after you say “I do.” But how can you be sure you need one? Here are some reasons you might consider a contract after marriage:
1. This is your second marriage
A second marriage is an important reason to consider a postnuptial agreement, according to ABC News. Second marriages bring a lot of possible complications, including what assets will go to your children. An agreement can ensure your prized assets do not get split up during divorce. It can also help you avoid problems when it is time to split your estate with any adult children from a previous marriage.
2. There is a change in wealth
A sudden increase in wealth is another time to consider a contract. One spouse might inherit a family business or experience success within a business of his or her own. This spouse might want to keep assets within the family or protect business partners from a potential divorce.
3. You are staying at home
If you are taking care of children rather than working, a postnuptial agreement can ease your mind. Giving up your career might feel right, but it can also put you at a significant disadvantage if your marriage goes south. An agreement can alleviate your concerns about recovering from years away from the workforce.
Creating a postnuptial agreement can eliminate fights about money and help you feel better about the future.