Divorce is notorious for causing significant financial setbacks. People concerned about the cost of divorce or the protection of their valuable resources may ask for prenuptial agreements before getting married.
However, many people achieve financial success or receive large inheritances after already entering into marriage. They may then worry about the potential loss of their most valuable resources during divorce proceedings.
Under New York’s equitable distribution statute, most assets acquired during marriage are subject to division if spouses divorce. Negotiating a postnuptial agreement may allow people to protect certain assets regardless.
What is a postnuptial agreement?
A postnuptial agreement is functionally similar to a prenuptial agreement. It outlines expectations for the spouses and provides guidelines for property division. It may clarify how spouses intend to divide certain assets or establish certain assets as separate.
Couples who recognize that their marriage is on shaky ground may want to sit down together to negotiate terms for a postnuptial agreement. Doing so could help them realign their expectations and work on improving their dynamic.
If they do eventually divorce, the terms that they set in the postnuptial agreement can help protect their assets and limit how much they have to invest in the divorce itself. Inheritances, businesses, real property and retirement savings are all among the assets that people may want to address in postnuptial agreements.
Negotiating property division terms in advance can help spouses proceed with an uncontested divorce or may even help them avoid a divorce. Spouses considering divorce may want to discuss the possibility of a postnuptial agreement as a means of preventing the worst possible divorce outcomes.
