Many people make prenuptial agreements before marriage. This legal document ensures that each couple retains some or all of the assets they brought into the relationship if there’s a divorce later. With a prenup in hand, you may be able to keep a home, car or collectible from being taken in a split.
Sometimes people go into a marriage without making a prenup and later regret their decision, while others may never have realized it was even an option. Since a “prenup” is, by definition, something that occurs before marriage, are you out of options? Absolutely not. This is where a postnuptial agreement comes into play.
What is a postnup?
Postnups aren’t much different than a prenup – they’re practically the same thing. A postnup is a legal document that protects assets from divorce, much like a prenup. The only difference is that a postnup is made after marriage.
Not only are postnups made during a marriage legally recognized but a properly executed postnup can void prenups, allowing couples to update their asset protection plans. There are several benefits to updating how assets are divided in a divorce – even if you already have a prenup that covers most of your possessions. These benefits may include the following:
- Protecting newly acquired assets (inheritance, investments, etc.)
- Protecting a newly formed business
- Redefine expectations with your spouse
- Simplifying the divorce process
- Save money on a divorce
If you’re considering protecting your assets with a prenup or postnup, you should reach out for legal help when creating these complicated legal documents. That’s the best way to protect your future interests.