No Texas couple wants to think about their marriage ending before it has even started. This is why talks about divorce and including a marital agreement in their union is off-putting and causes many to not reach an agreement on a prenuptial agreement. Although a prenup did not make it into their marriage, this does not mean they lost their chances for having a marital agreement. In fact, many couples decide to get a post-nuptial agreement following their union.
Getting a postnup after marriage
Postnuptial agreements, just like prenups, offer protections for spouses if the two were to divorce. The only difference between the two agreements is the time they are signed and made enforceable. Neither type is reserved for the rich and famous, as one does not need to have assets and property that is multitudinous. All that is required is the spouses agreeing to the terms of the agreement that designates ownership of certain assets.
Nonetheless, one very good reason to abruptly include a postnup in a marriage is when one or both spouses suddenly become rich. When the financial situation has drastically changed, it is important to look at this in a big picture way. This means limiting one’s exposure in the event of a divorce and designating the amounts each spouse is entitled to in the event of a divorce.
Community property state
In community property states, like Texas, having a postnuptial agreement can prove to be very valuable. Consider instances where one spouse inherits real estate. This could remain separate until marital funds are used for upkeep, repairs and insurance. If the property is rented, this would cause any revenue made to be considered marital property. In order to protect this property from becoming marital property, an asset protection trust could be established though a postnuptial agreement.
Other reasons for a postnuptial agreement
A postnuptial agreement can serve many benefits. Another reason to include a postnup in a marriage is when one seeks to pass down an inheritance. A postnuptial agreement can work with an estate plan when it comes to ensuring that certain property is passed to the named heir or beneficiary. A postnup can also help protect a spouse’s retirement accounts and even provide for safeguards is the couple were to separate.
There is no telling what the future will bring, which is why it is important to consider the effects a divorce could have on you. Whether you seeks to draft a marital agreement, want to enforce the document during divorce or are contesting a postnup, it is vital that you fully understand your rights and options in the matter.