Pre-Nuptial Agreements vs. Post-Nuptial Agreements: What's the Difference?
When we get married, we envision a long and prosperous life together. Unfortunately, things don't always pan out, and sometimes couples realize they need to part ways. When facing such an emotionally charged process, you may seek a family law attorney Scottsdale residents count on - if you live in Arizona.
Genesis Family Law and Divorce Lawyers in Scottsdale, AZ, can help you sort out all the details while safeguarding your rights. We offer aggressive legal representation to ensure you're not taken for a ride in a divorce.
That said, when you're about to get married or are already married, you may need to discuss a pre-nuptial or post-nuptial agreement. What do they stand for, and which is ideal for your situation? Let's discuss the fundamental differences.
What's a Prenup?
A prenuptial agreement is a contract that generally covers the dissolution of property, assets, and debts at the time of separation. You basically sign the agreement before marriage, and the contract protects your assets in case of divorce.
It typically goes into effect at the time of separation or divorce. Likewise, it may also establish obligations for each party to the marriage, such as spousal support.
If separation is on the cards, a prenup may avert court battles, allowing you to reach a quicker agreement on various financial issues. Basically, the contract outlines what each party should get post-divorce, reducing the chances of disagreements. Here's a quick outline of the role a prenup performs:
- Protecting pre-marital assets: Case law does not explicitly differentiate marital and non-marital assets. As such, the family court may use the grey area to divide non-marital assets as part of the divorce settlement on account of each party's needs. A prenup helps safeguard these assets by providing a clear record of what you both own before marriage.
- Safeguarding trust assets: They say once beaten, twice shy. If you've divorced before, a prenup can help protect assets and property you may have accumulated in a trust. This is usually the case for couples with children from previous marriages, as the prenup can help protect their respective children’s interests.
- Shielding your property from financial liability incurred by a spouse: If you own property before marriage and there are expectations of incurring debt later, a prenup can help protect your property from such liability.
- Streamlining financial management during the marriage: Financial issues are typically among the leading causes of disagreement and conflict in marriage. A prenup helps establish financial management protocols, allowing you to agree on handling your finances throughout your union.
By agreeing at the formative stage of your relationship, you can set the ground rules for budgeting, saving, or other financial arrangements you deem necessary. As such, the prenup can create a foundation of a strong union.
What's a Postnup?
A postnuptial agreement also protects the interests of both partners in marriage if they decide to separate. But, it comes into effect after marriage, while a prenup is signed before marriage.
A postnuptial agreement generally addresses issues that may arise during a relationship, such as changes in finances or lifestyle. It can also address issues after marriage, such as credit card debt incurred by one partner or business investments made by either party.
A postnup can help address the division of property and assets in case of separation and other financial matters such as alimony. Thus, it allows for a much more detailed division of assets than in a divorce settlement.
Additionally, a postnup may cover issues such as spousal support and money management during the marriage. It can also contain an infidelity clause, which allows one partner to stipulate that the other partner pays the penalty if they are unfaithful.
Downsides of a Postnup: Why A Prenup Makes More Sense
If you're yet to say 'I Do,' it's advisable to discuss your finances and draw up a prenup rather than a postnup. Here are some of the downsides of opting for a postnuptial agreement:
- Difficulty enforcing it: As a couple, you owe each other a certain amount of trust. If either partner doubts the other's commitment and loyalty, they may not agree to a postnup. Plus, it’s highly likely the court will conclude one party was pressured into signing the contract. As such, for the agreement to be valid, family courts require you to prove or show that neither of you is disadvantaged. In short, both parties should get something out of postnup. Thus, unlike a prenup which is easier to enforce, a postnup's enforceability is sometimes questionable.
- Legal bottlenecks: In some states, marital property is subject to a certain level of legal protection. Thus the court may not honor an agreement written by you and your partner, even if it was reached and signed during the marriage. For instance, if the communal property is subject to a 50/50 split, the court may not abide by your agreement for a 60/40 split.
- Taking a gamble: A prenup can allow you to establish a firm foundation for your union. Conversely, a postnup means you hope things will work out, which leaves you financially bound to your partner even after separation. Thus, assets acquired before marriage would be subject to community property laws. For instance, you would share debt brought into the marriage, even if only one partner incurred it.
- Weakened commitment: A postnup could be a precursor to separation and indicate that the relationship is on its way out. Thus, it could spell trouble for the longevity of your marriage.
It's not uncommon for couples who've fallen out and later reconciled to opt for a post-nuptial arrangement to iron out their issues. It could also be a good option if you’ve encountered a rough financial patch or marital problems. Yet, a prenup is typically more reliable than a postnup and ensures that neither partner takes undue advantage of the other in a divorce or separation.
If a prenup didn't cross your mind before marriage, a postnup could be a viable option. But whichever path you choose, consult a qualified family law attorney to determine whether the contract you create is legally binding or enforceable in your state. Our competent legal team is on hand to help you deal with such matters. You may also explore our website at https://familylawattorneymesaaz.net/scottsdale/ to learn more about family law matters.
Name, Address, and Phone
Genesis Family Law and Divorce Lawyers in Scottsdale AZ
7702 East Doubletree Ranch Road #336 Scottsdale AZ 85258,