When is a postnuptial agreement a good idea?
Postnuptial agreements can be very useful tools for people in different situations but the contracts must be drafted properly.
Every couple in Florida has a unique relationship and what is right for one may not be right for another. That said, every marriage has the possibility of ending in divorce. For this reason, each spouse should take seriously the notion of how to protect themselves financially in case that ever happens. When there is no prenuptial agreement in place, a postnuptial agreement may just the thing to help out.
Some reasons a postnup makes sense
When trying to decide if a marital contract is needed, one thing people should look at is any change in a couple’s financial situation. An example of this is when one spouse decides to stay at home to raise children.
As Forbes explains, the years dedicated to having and taking care of kids can be some of the most critical for a person’s career. Losing this time in the workforce can have serious negative repercussions on that spouse’s earning potential down the road.
ABC News suggests that provisions for both child support and alimony can be included in a postnuptial agreement. This may help to protect stay-at-home parents from financial problems if a divorce happens down the road.
If one or both spouses start or join a business venture after getting married, it may make sense to outline how any profits, losses or debts associated with that business might be handled in the event of a divorce.
As with their prenuptial counterparts, postnuptial agreements can and should give details about how debts as well as asset should be addressed. These can be personal or business assets and debts.
Validity of contracts is important
Any contract must be developed in such a way as to be legally enforceable if it is ever needed. The same is true of a postnuptial agreement. According to Forbes, there are some things that may lead a postnup to being declared invalid.
One problem to avoid is the inclusion of any provisions that are not considered reasonable and potentially even unconscionable. For example, trying to control another person and requiring them to maintain a set weight or hair color is not recommended in a postnup.
Forcing one spouse to sign an agreement under great stress or when that person is not fully mentally able to make such an agreement may also render it invalid later on. Additionally, each spouse is required to fully and completely disclose all assets and debts.
Legal help is recommended
Each spouse in a Florida marriage should have his or her own legal representation when setting up a marital contract. Talking to an attorney when first considering a postnuptial agreement is recommended so that couples know how to approach the creation of these agreements properly.