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Is it time for a postnuptial agreement?

On Behalf of | Apr 26, 2024 | Asset Division

Marriage marks the beginning of a partnership that joins not just families and dreams but also the finances of two people. Managing money within a marriage can be complicated, sometimes leading to disagreements and misunderstandings. Thus, many legal and financial experts recommend signing a prenuptial agreement before marriage. But what if you and your spouse did not sign one? This is where a postnuptial agreement can come into play.

Contrary to popular belief, getting a postnuptial agreement does not mean you are preparing for divorce. Instead, it is about you and your partner proactively managing your finances amid unexpected changes you did not anticipate before tying the knot. Here are some circumstances where you and your spouse might consider signing a postnuptial agreement.

Significant changes to finances

Life is unpredictable, and significant financial changes can occur and alter the dynamics of your relationship. Whether it is a large inheritance, the start of a new business or a significant jump in income, these changes impact how you manage your wealth. A postnuptial agreement can help clarify how you will manage these new assets or changes within the marriage.

Clarifying financial responsibilities

It is not uncommon for spouses to discover that they have different approaches to managing their finances. Whether it is about your methods for saving money or the types of investments you make, varying strategies involving finances can easily lead to disagreements. If you frequently clash over managing money, a postnuptial agreement can lay down clear financial responsibilities and expectations. Having this clarity can significantly help prevent arguments over finances.

While some might find signing a postnup daunting or unromantic, it is simply a tool that ensures both partners are on the same page regarding their financial situation. At its core, a postnuptial agreement is a road map for your marital finances, guiding you and your spouse along agreed-upon paths and avoiding unnecessary disputes.