Most people have heard about prenuptial agreements. However, fewer have knowledge of postnuptial agreements and how they can protect certain assets.
Once considered rare, mid-marriage agreements are becoming more popular amongst couples who have been married for a number of years. Here are a few tips about these legal contracts.
Most postnuptial agreements deal with property
California is a community property state, where each party is entitled to half of the couple’s assets. But if the parties agree that certain assets are solely owned by one spouse, the courts will generally approve them.
They can end at some point
Some post-nuptial contracts expire, or “sunset” after a certain future date agreed upon by the couple. Should that be the case, the assets would be divided 50/50, according to California law.
Who can benefit from postnuptial agreements?
Women who gave up lucrative careers to be stay-at-home moms and homemakers while their husbands earned large salaries. A postnup can reassure wives that they will be financially secure no matter what the future holds.
If one party in the marriage has been unfaithful, a postnup can stipulate certain favorable terms that would take effect if the partner steps out of the marriage again, e.g., getting a higher portion of the retirement benefits.
There are limits to postnups
Don’t bother trying to get a postnup that deals with either child custody or child support. Those issues are determined by the family law courts here in our state.
Clearly, postnuptial agreements won’t solve every marital crisis or situation. But they are a useful tool for some California couples attempting to restructure the terms of their marriage.