For those who missed the prenup boat, the postnup or postnuptial agreement is coming of age.
What’s a postnup? It’s basically a prenup, only executed after the wedding day.
Like a prenup, it can spell out what a couple wants to happen to assets acquired by either or both spouses during the marriage, as well as premarital or otherwise separate nonmarital assets of either spouse, in the event of their divorce or the death of either.
Why would a couple do a postnup?
Several possible reasons. As some examples:
- They didn’t do a prenup.
- They’ve had a change of heart and want to update or modify a prenup, in whole or in part.
- They’ve had a change of circumstances or assets and want to update or modify a prenup, in whole or in part.
- Their marriage feels less solid than it used to.
- New children or grandchildren enter the picture.
Actually, a postnup can also address child custody and/or support issues, but any provision as to those issues is subject to review and approval or modification by the family court.
In these uncertain times, postnups are gaining significant traction.
Couples who execute postnuptial agreements should take note that, because they are already married, family law holds them to what is called a fiduciary duty to each other, and requires that each spouse make full and fair disclosure of their financial picture to their spouse.