What Constitutes a Valid Postnuptial Agreement?

Most people have heard of prenuptial agreements or prenups. They are designed to protect the assets of each spouse before getting legally married. However, married couples have another lesser-known option in postnuptial agreements. If you are considering a postnuptial agreement and want to learn if it is right for you or when it is considered valid, reach out to an experienced Oakland County family lawyer for skilled legal advice and information.

What is a Postnuptial Agreement?

A postnuptial agreement, sometimes referred to as a postnup, is a contract that a couple can draft and sign once they are already married. It behaves in largely the same way as a prenuptial agreement in that it handles the affairs of each spouse and outlines what will happen in the event of a divorce or death.

This legally binding contract can address a wide range of issues including the following.

• Asset division: It will outline how the couple’s property and assets will be divided if they divorce or one spouse dies.
• Debt division: The postnup will also dictate responsibility for any already existing or future debts that either spouse may incur during the marriage.
• Alimony: The contract will include details related to the terms and conditions of spousal support obligations.
• Inheritance: It can also include a provision about inheritance rights and distribution of assets upon an individual’s death.

Postnup agreements can be useful in situations where there have been significant changes in circumstances since the couple got married. For example, if either spouse started a business, acquired substantial assets, or had changes in their financial status, a postnuptial agreement may be necessary.

When is a Postnup Valid?

Postnuptial agreements are not as common as prenuptial agreements. For this reason, there is little case law determining what exactly a postnup should be. If you and your spouse are considering signing a postnuptial agreement it is important to understand what makes the contract valid.

First, both parties must enter into the agreement voluntarily and without coercion or pressure. Each spouse should make the decision without force or manipulation. Each party must also give full and complete disclosure of their financial situation including assets, debts, income, etc. If either spouse misrepresents their financial information the agreement can be challenged or deemed invalid.

The terms of the postnup must also be reasonable. They cannot result in an inequitable outcome or be unfair to one party. Another notable caveat is that postnups must be in writing. Oral agreements are not enforceable as postnuptial agreements.

Both parties must sign the agreement and have the contract notarized to ensure enforceability and avoid disputes or issues later on.

During times of change or stress, postnuptial agreements can serve as a tool to help couples clarify financial agreements and responsibilities. If you are interested in signing a postnup it is important to obtain help from a skilled attorney to ensure you are following proper legal procedures. Reach out to a lawyer today for more information.