When two people in New York get married, they naturally expect to stay married forever. However, financial issues can quickly ruin their marital union. For these reasons, putting together prenuptial agreements is generally a good idea for couples who are planning to enter marriage soon. For those who are already married but never created these legal documents, they can still create postnuptial agreements to protect their financial best interests.
The purpose of a prenuptial agreement is to spell out both parties’ intentions regarding how their assets and earnings are handled during their marriage. However, this document can also dictate what happens to their assets if they decide to get divorced down the road. A postnuptial agreement likewise details how two people’s marital property should be used during their marriage or divided in the event of divorce.
Postnuptial agreements are especially handy for couples who rapidly experience changes in their finances right after they get married. For instance, one spouse may decide to start a business a few years into the marriage. If the business quickly grows into a highly lucrative asset, it may behoove the business-owning spouse to create a postnuptial agreement to protect this asset long term.
Postnuptial agreements can address a wide variety of issues, including not only property division but also the splitting of debts, earnings and future inheritances. In fact, they — like prenuptial agreements — have the potential to make marriages stronger by facilitating healthy discussions about finances. An attorney can provide the guidance necessary to develop postnuptial agreements that accurately reflect clients’ needs in New York.