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Postnuptial agreements may help couples reset their finances

On Behalf of | Jan 16, 2020 | Divorce |

Some married couples in Illinois have used a postnuptial agreement as a way to reset their finances and protect their assets in case of a divorce. This document is similar to a prenuptial agreement. The main difference between the two documents is that a postnuptial agreement is signed during marriage and a prenuptial agreement is signed before marriage.

Postnuptial agreements have been useful in helping couples where one partner isn’t good at handling money. Some have seen it as a way to address the problem and help the couple work together to get a fresh start in the way they handle their money. Another situation where this document may be beneficial is where one individual may receive a large inheritance and wants to protect it.

When it comes time to discuss why each individual wants a postnuptial agreement, it is time for full disclosure. Conversations regarding finances should include discussing how debt accumulated and how the couple will attack it. It is also a good time to discuss assets and significant investments that have been made. The couple can decide how they would like their money handled if they were to divorce or who they would pass their assets onto if they were to die. Their conversation may involve minor or adult children.

Postnuptial agreements can be beneficial when a couple owns a business. This document basically allows a couple to lay out a customized plan as to what will happen with the business if the couple decides to get a divorce. They might discuss how ownership will be shared, how debts will be paid and how the business will eventually be passed on. Each partner may discuss their circumstances with an attorney. The attorney might be able to answer a person’s questions about divorce, property division, spousal support and other legal matters that arise at the end of a marriage.