Let’s talk about postnups–that is, a marital contract you sign with your spouse DURING the marriage. It is an agreement that outlines certain financial topics, such as property ownership, inheritance, certain aspects upon death, tax filing, and more. Now, you might be thinking, “I’m happily married, why would I need a postnup?” But keep reading to learn about ten reasons why you should consider getting one.
First…what is a postnuptial agreement?
A “postnup” or “postnuptial agreement” is an agreement made after the wedding day (hence the term post-nuptials). It is very similar to a prenup in what you can put into it–property division, alimony (in some states), inheritances, business interests, taxes, and more. The main difference between a postnup and a prenup is when it is signed (a prenup is signed before the wedding day). Postnups and prenups are so similar that some states choose to apply the same legal standards and review for both prenups and postnups. But why do people usually get postnups? Let’s discuss…
10 reasons why people get postnups
Now, without further ado, here are 10 reasons why people get postnups.
- You didn’t get a prenup, but you now realize the importance of one. If you missed your window of opportunity to get a prenup and now you want a postnup–No worries! A postnup can offer similar clauses, safeguarding your finances no matter what life throws your way. Or maybe you thought prenups were for people “who weren’t in love,” but you now see, without the rose-colored glasses, that having a marital contract is just plain smart. I mean–you have one anyway, it’s your state’s default law.
- Postnups build trust and transparency in your marriage. Getting a postnup (or a prenup) means you are required to bear all in terms of finances. And money can be a touchy subject–sometimes (even married folks) have trouble sharing their intimate financial details. A postnup encourages open and honest conversations about your finances, building trust, and preventing misunderstandings down the road.
- Postnups get you and your spouse on the same page. Let’s face it– Life changes, people change, and so do your goals. A postnup helps you and your spouse stay aligned on big things like retirement, savings, buying a house, having children, careers, or starting a business. It’s like a written commitment to your shared future.
- Postnups can protect your kids from another relationship. If you have children from a previous relationship or marriage, a postnup can help ensure that THEY get your money and not your spouse. While you’re sure you love your spouse, and you want to provide a little something for them if you die, you don’t want them to take half or a third of your entire estate, like your state law may dictate. And, yes, in many states, your spouse can still take a portion of your estate even if you write them out of the will. This is to prevent accidental disinheritance, but many times it causes disputes between children and second spouses. Making sure you and your spouse waive that right to take estates in death ensures those assets go to your kids. And you can still give your spouse something small via a valid and enforceable estate plan.
- Reaffirm your prenup. If you already have a prenup, but you just want to reaffirm it’s terms (maybe its been a few years or maybe you’ve had some relationship turbulence). Whatever the reason– getting a postnup to simply reconfirm with the law and your spouse that everything still stands can be empowering. A postnup can reaffirm those commitments or even update them to reflect your current situation.
- Unexpected life changes. Maybe you started a business, had unexpected kids, won the lottery, or received a huge unexpected inheritance that wasn’t on the table when you got married. A postnup lets you adjust your agreement to fit your evolving needs. Maybe you two simply developed into different people during the marriage, and a postnup just makes sense now. People are hardly the same people they were at 25 as they are at 45, so don’t be ashamed of the changes—it’s totally normal!
- The honeymoon phase is over, and a postnup can seem more enticing. A postnup, which is created during the marriage, allows you, as a couple, to address financial realities with a clear head and create a plan that works for both of you. Now that you’ve experienced what married life is all about, you can truly contract around terms that make sense for you both.
- Postnups can provide stay-at-home spouse security. POV: You and your spouse entered the marriage as independent, career-focused people. Fast-forward five years, and you have two kids, one on the way, and one person who is now a full-time stay-at-home parent. If one of you sacrificed their career to stay at home with the children, a postnup can ensure that person is protected financially, even if the marriage ends.
- Shield your business-baby with a postnup. Starting a business is exciting, but it’s also a big investment. If you started a business during the marriage and you don’t already have a prenup, then a postnup can protect your hard work and ensure your business stays yours.
- Protect yourself against debt with a postnup. If your partner has accumulated some debt during the marriage, a postnup can help you keep your finances separate and prevent you from becoming responsible for their obligations. Because yes, in many states, you could be responsible for a portion of your spouse’s debt, even if you weren’t involved in it.
“But I heard postnups aren’t enforceable?”
Well, you heard wrong…for the most part! The vast majority of states in the U.S. say that postnups are enforceable, as long as you follow their rules. There are a small handful of states that do flat out say you cannot get a postnup in their state such as Iowa and Oklahoma (See In re Marriage of Hansen, 924 N.W.2d 873 (2018), stating postnuptial agreements that are not in contemplation of divorce are generally not enforceable in Iowa; and Hendrick v. Hendrick, 1999 OK CIV APP 15, holding that postnuptial amendments to prenup were unenforceable in OK).
Many states explicitly allow postnups via legislation directing couples on how to obtain a valid and enforceable postnuptial agreement, such as Minnesota (Minn. Stat. § 519.11) and Colorado (Colo. Rev. Stat. § 14-2-302).
Bottom line? Postnups are enforceable, it just depends on your state laws and making sure you follow whatever laws your state sets out for creating a valid and enforceable postnup.
Bottom line on why people get postnups
So there you have it – ten compelling reasons why couples choose to create a postnuptial agreement. It’s about creating marital harmony and taking charge of your financial future, not about introducing conflict. Whether you’re shielding your business, protecting your children’s inheritance, or simply seeking clarity and peace of mind, a postnup can be a valuable tool for any couple.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
0 Comments