When couples first exchange vows, the idea of a marital agreement may seem distant and unromantic. However, life is unpredictable and circumstances change.
If the dynamic of your marriage starts to point toward divorce, a postnuptial agreement may be on the table. This can be to the benefit of both sides, but the question remains as to whether it is too late to enter into such an agreement.
Understanding postnuptial agreements
A postnuptial agreement is a legal document that a married couple creates after their wedding. It outlines how their assets and liabilities will divide in the event of a separation or divorce. While it may not be a romantic topic, it can be a practical way to ensure financial security for both spouses.
The timing dilemma
The big question is whether it is ever too late to get a postnuptial agreement. The answer is that it is never too late, but it is a good idea to consider the circumstances and motivations.
- Changing Circumstances: If your financial situation changes significantly after marriage, such as if one spouse starts a successful business or inherits a substantial sum of money, it might be a good time to address the issue of financial division
- Marital Issues: If you encounter marital problems and need help resolving these issues or alleviating concerns about assets, a postnuptial agreement can be a means of addressing and resolving disputes
- Rekindling Trust: In some cases, a postnuptial agreement can even help strengthen the bond between spouses
Both individuals should be forthcoming about their financial situations, assets and debts. The agreement should, above all else, be fair to both parties.
Surveys indicate that about 1 in 5 married couples have a prenup, and it stands to reason that even fewer have a postnup. That certainly does not mean that it is too late to sign a postnuptial agreement, and doing so may be in the best interests of both you and your soon-to-be ex-spouse.