Marital agreements can carry some stigma with them - much of which is undeserved - so if you're unsure what the benefits of getting a postnup are, you aren't alone. Understanding the pros and cons of postnups could help you identify whether one is right for your marriage.
To schedule a consultation with our team and discuss your marital agreement options further, contact us online or via phone at (704) 659-0007.
Pro: Manage Finances More Easily
If you and your spouse are wealthy, one of you could potentially receive a significant inheritance, or one of you wants to start a business at some point, a postnup is probably smart.
You can use a postnuptial agreement to dictate what assets are considered separate (meaning they'll belong to one party in the event of a divorce) and which are marital (meaning they could be distributed among parties in the event of a divorce).
For many people, just having the assurance that they completely own a valuable asset they develop during the marriage offers invaluable peace of mind. This may be especially true if one party has worries that the other is "using" them for their money.
Pro: Greater Control Over Delegating Assets To Your Children
If you have children, you may want to seriously consider a postnup.
Different states have different rules for how assets and liabilities are distributed in the event of a parent's death. However, in many circumstances, spouses receive a significant amount of a decedent's (deceased person's) assets and liabilities if they pass away or lose capacity.
You may prefer your children to have a greater - or lesser - share of your property if you pass away or suddenly become incapacitated. A postnup can help you have more control over how your assets and liabilities are distributed if you pass away or divorce from your spouse.
Pro: Determine How Finances Are Used During the Marriage
One of the most underrated benefits of a marital agreement is that spouses can use it to determine how finances are used during the marriage.
Marital agreements can be considered "unconscionable" by a court if the terms are unreasonable for one or both parties. However, you can use a marital agreement to set fair spending practices in place for one or both parties. This can help you manage finances more easily.
Con: The Stigma
Marital agreements often carry a stigma with them. Some people argue that, if you want a marital agreement, it's a sign you're expecting a divorce.
The truth is often more pragmatic and less pessimistic. There's no way to foresee how you and your spouse's lives may change. One of you could get in an accident. One of you could experience a life-changing event and decide to part ways with the other.
Very few people tie the knot expecting to divorce. However, life is strange and unpredictable. A marital agreement can offer you security and peace of mind that enables you to have a more equitable union.
At Rech Law, P.C., we'll help you develop an effective postnup with your spouse. To schedule a consultation with our team, contact us online or via phone at (704) 659-0007.