Many wise Illinois couples sign a prenuptial agreement before the wedding. Far fewer people have heard of a postnuptial agreement. Postnuptial agreements are essentially the same thing as prenuptial agreements, but they are signed after a couple is already married.
However, they have a unique requirement that prenups don’t have. The law requires mutual consideration, as is required in a valid contract. Pre-nuptial agreements are preferable, but Post-nuptial agreements are possible.
Every couple’s situation is unique. A truly experienced Illinois postnuptial attorney is the best person to explain and draft a postnuptial agreement. Here are some of the most common reasons spouses in Illinois sign a postnuptial agreement, as well as the kind of issues postnuptial agreements can address.
Why Get a Postnuptial Agreement if We Are Already Married?
Couples may seek a prenuptial agreement for many reasons, but some of the most common include:
Separation events – Unfortunately, many couples ignore the money-saving advantages of prenups. Instead, financial and possible separation issues rise during crisis. Many times, an affair is the precipitating event. At that point, spouses trying to counsel and reconcile think more seriously about the what-ifs. Rather than divorce or separation, perhaps a post-nuptial agreement can positively address finances and spousal behavior.
Wealth inequality – If one spouse owns substantially more wealth than the other, protect assets in the event of a divorce is crucial. Postnuptial agreements can ensure that spouses retain individual ownership of their personal assets that probably would be included in the property division of divorce or legal separation.
Children from previous marriages – Previously married spouses still need to financially provide for their children. They must ensure their current marriage does not inadvertently jeopardize their children’s short- and long-term financial well-being. Spouses typically inherit the other’s assets when a spouse dies. A well-planned postnuptial agreement can redirect inheritance, in part or whole, to their children. Likewise, a postnuptial agreement can stipulate that a portion of the parent spouse’s income and assets remain available for their children’s needs. Protect your family’s interest with a proper post-nup.
Business ownership – A spouse who owns a business can protect their exclusive ownership of the business, with a postnuptial agreement. Assessing and dividing the value of a business is a complex and difficult part of many divorces, and a sound postnuptial agreement can prevent unnecessary conflict and hostility in the future.
What Can a Postnuptial Agreement Include?
Potential inheritance – Spouses who anticipate receiving a sizable inheritance may want to ensure that it remains their sole property in the event of a divorce. Although an inheritance is generally presumed to be the property of the inheriting spouse, certain behaviors like commingling can complicate or convert ownership. Seasoned attorneys can explain how to protect your non-marital property. A postnuptial agreement can also simplify matters.
Many of the things couples choose to include in their postnuptial agreement are related to the above situations. Other possible provisions include:
- Parameters for spousal support if the couple divorces;
- Division of debts, including student loans accumulated during the course of the marriage;
- What happens to shared assets if one spouse passes away;
- Which spouse will pay for certain expenses during the marriage;
- How much each spouse will contribute to joint savings or retirement accounts;
- Which spouse will be responsible for managing the couple’s finances.
A postnuptial agreement cannot address issues related to child support and child custody. These can only be addressed during a divorce or separation with the approval of an Illinois court.
The best advice is to get experienced advice as soon as you can. If you have thought of separation or divorce, call you family law attorney to discuss a possible post-nup.