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Protecting your financial interests with a postnuptial agreement

| Dec 13, 2019 | Uncategorized |

When two people get married, they are excited about what the future holds. It is likely there is no thought regarding the potential for divorce. As a result, many Louisiana couples walk down the aisle without the legal protections that may be necessary and important down the road. By overlooking the need for a prenuptial agreement, they may be exposing themselves to great financial and legal risk.

If you are already married, there are still certain types of legal protections that could be available to you. While a prenuptial agreement is only an option for two people who are not yet in a marriage, a postnuptial agreement works in much the same way, yet a couple drafts this type of contract at some point down the road.

What does it do? 

The intent of a prenuptial agreement is to outline how property division will work in the event a couple decides to divorce in the future. These agreements can help a person protect separate property and closely held assets. They can even allow the two spouses to outline how they want to share financial responsibilities during the marriage. A postnuptial agreement always happens after the couple is already married, yet it functions very similarly to a prenup. 

Who needs one?

A postnuptial agreement could be a smart choice for your situation. This may be a prudent move if you or your spouse has experienced a significant change in financial circumstances since you first married. Specific goals you can accomplish with a postnuptial agreement include: 

  • You can protect the financial interests of children from a previous marriage.
  • It allows you to shield yourself if your spouse accumulated a lot of debt.
  • You can protect yourself in case you stop working to take care of the children.
  • It allows both parties to clearly outline wishes in case of a divorce.

One of the main benefits of a postnuptial agreement is that it can provide you with peace of mind regarding your financial future. If you want a sense of security regarding your future, this type of marital contract could be beneficial for you.

Do it the right way

It’s important that a postnuptial agreement is drafted correctly, is in writing and contains terms that are fair and reasonable. As with any type of legal contract, you will find it beneficial to seek the guidance of an experienced attorney as you draft, negotiate and review any agreement before signing.