A postnuptial agreement is created by spouses when they enter a marriage that outlines the financial aspects and its division in the event of a divorce. This agreement can also include the responsibilities that will come your way during the marriage period, including the children’s responsibilities.
People often get confused about postnuptial agreement and its importance. So, in this article we will discuss everything about the postnuptial agreement. You can also learn more about this topic by visiting the official website of any law firm. There would be detailed clarification about this topic in simple words, and you can also get legal guidance about the agreement.
What is a Postnuptial Agreement?
A postnuptial agreement is a written contract between two parties who are already married. In this agreement, there will be clarification about how your financial assets will be divided in case of divorce. This agreement will dictate how the assets will be distributed and financial support, determine who’s responsible for debts, and address other similar issues. It can be used to protect assets, and it is also used as a clarifying financial arrangement during the marriage.
What are the Basic Elements of a Postnuptial Agreement?
The law may differ in various jurisdictions, but there are five essential elements of the postnuptial agreement that we follow. Some of them are as follows:
- The postnuptial agreement should be in a written format and not oral. The oral agreement will not be accepted legally.
- The agreement should be signed voluntarily by both parties and thus, there should not be any force or unwillingness while agreeing.
- There must be complete and fair disclosure of financial details and other information during execution.
- There should not be terms which are unjust or one-sided in nature.
- The last element is that both the parties must have signed the agreement.
What are Items Covered Under the Postnuptial Agreement?
- Division of property already owned by either or both the parties jointly.
- It also clarifies the division of property that will be purchased after signing the agreement.
- There will be inclusion of spousal maintenance.
- It will also include the division of pension assets.
- Information about payments of current or future debts will be held in sole names or jointly.
- It will also arrange for life insurance, future inheritance, and any gifts exchanged or received by either party from others.
So, you must consult an experienced lawyer before discussing the postnuptial agreement so that there is no issue at a later stage.
