Nowadays, many people consider entering prenuptial agreements to protect accumulated wealth prior to marriage. But what happens in situations after marriage where there is no premarital agreement and parties want to protect their property?
When it comes to asset protection after marriage, a postnuptial agreement offers one solution. Read on to learn more.
What is a Postnuptial Agreement?
A postnuptial agreement is simply a written contract that couples enter after marriage – as opposed to a premarital agreement, which is entered prior to marriage. In most cases, a postnuptial agreement presumes that the parties intend to stay married, but wish to memorialize certain agreements that they’ve made between themselves.
Such agreements can cover what will happen with assets during the marriage, or what will happen with assets after marriage if the union ends in divorce or death of a spouse
For Better
Signing a postnuptial agreement can decrease stress for a couple. The couple will know exactly how their assets will be used or classified during a marriage, upon death, or in the event of a divorce, which can reduce worry and speculation.
Suppose, for example, that during the marriage, a spouse inherits a substantial sum from a relative. The couple may agree that the money will be given to their children in the event of divorce. A postnuptial agreement can protect this sort of asset from later division between the parties, even if one spouse subsequently changes his or her mind about leaving the asset to the children.
Or Worse
A postnuptial agreement doesn’t have to be for those who experience an unexpected windfall. Sometimes, a written agreement may be necessary to protect assets and allow the marriage to continue.
For example, consider a spouse who has a gambling problem. While both parties may want to continue the marriage while he or she seeks help for this addiction, a postnuptial agreement can ensure that the marital home, family business, or other assets are protected.
As another example, suppose a spouse strays from the marriage. The parties may want to try reconciliation, but the innocent spouse may want certain assurances that an investment in reconciliation will be rewarded by receiving certain assets in the event the reconciliation fails.
What Can a Postnuptial Agreement Contain in Virginia?
Postnuptial agreements can cover almost any issue, as long as it doesn’t violate public policy.
Postnuptial agreements can cover:
- What assets each spouse will receive in the event of death or divorce;
- Whether a spouse will pay alimony upon divorce, and the amount and duration;
- How to divide marital debts in the event of death or divorce;
- How the parties will handle their finances and share expenses during the marriage.
Can a Postnuptial Agreement Be Enforced in Virginia?
Yes. The Code of Virginia allows for the enforcement of marital agreements.
As soon as the document is signed by both parties, it becomes an enforceable contract. Should either party violate the terms of the postnuptial agreement, contact the attorney who helped create it.
If you feel that your peace of mind and your marriage can be protected with a postnuptial agreement, contact the lawyers at Cooper Ginsberg and Gray.
Our lawyers have experience creating postnuptial agreements, so feel free to schedule a consultation.