Postnuptial Agreement
What Is a Postnuptial Agreement?
Postnuptial agreements are made after a couple is married. They operate similarly to prenuptial agreements, which are made before marriage.
Like prenups, postnups are legally binding agreements that spell out the division of assets in the case of a divorce. They can decide who takes on marital debt after a couple separates, name one spouse as the owner of a business, and outline ownership of an inheritance. Postnups can also be used to ensure spousal support, especially if one party leaves the workforce to take care of children.
Child custody and child support are not addressed in postnuptial agreements, because these must follow state laws.
How a Postnup May Benefit You
The agreement can be used to protect many forms of financial assets, such as a party's inheritance or gift, or to clearly define who takes over a business after a divorce.
Or, if a couple originally decided against a prenuptial agreement but change their mind later in their marriage, a postnup can allow them to draft a new agreement.
Postnuptial agreements may also be made if a spouse is suspected of infidelity. The new agreement can include a financial penalty in the event of marital misconduct.
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Types of Divorces in New Jersey
Not having a prenuptial agreement or postnuptial agreement can make separations more complicated, depending on how the divorce proceeds. Though postnupital agreements do not cover child custody or support, they can help simplify the division of property.
- In an uncontested divorce, property division, spousal support, child custody, and child support are agreed upon by both spouses. In this instance, an attorney is needed to prepare and finalize the settlement agreement. Jeffrey W. Goldblatt can help with mediation or arbitration and avoid going to trial.
- In a contested divorce, the parties do not agree on child custody, who gets what, or other aspects that need to be resolved. Contested divorces may include extensive evidence gathering, which can include interviews and depositions. Attorneys present the gathered evidence in court and ask for specific rulings for their clients.
What Can Happen in a Divorce With No Postnups
If a divorcing couple in New Jersey cannot agree on how to split property, the courts will engage in equitable distribution. Only property acquired during the marriage – called marital property – can be considered for equitable distribution. Gifts given by a third party and property acquired before the marriage are not considered during equitable distribution.
To decide who gets what assets, courts review each spouse's personal property, how much each individual contributed to acquiring the marital property, and the financial needs of each spouse after the divorce.
With so much left to interpretation by the courts, it's possible you can lose assets that your spouse once agreed should be yours. By having an enforceable postnuptial agreement, you can protect yourself and retain assets before New Jersey courts get involved.
Making Agreements Legally Binding
For prenuptial agreements and postnuptial agreements to be enforceable in New Jersey, both parties must fully disclose their finances and assets. The agreement must be signed by both parties without coercion.
If it is discovered during the marital separation that one party did not fully disclose their finances or if someone was forced against their will to sign the postnuptial agreement, New Jersey courts may not enforce the contract.
Having your agreement drafted by an attorney like Jeffrey W. Goldblatt can ensure that your contract follows state family laws. If you already have a marital agreement but your circumstances have changed, Mr. Goldblatt can help review or modify it. Contact our East Brunswick, NJ, firm to learn more.
My Partner Doesn't Want a Postnuptial Agreement
It can be difficult to discuss the possibility of divorce with your partner. They may see your interest in a postnup as a sign that you don't think the marriage will last. However, this doesn't have to be the case.
Rather than viewing this new agreement as a sign of an eventual separation, married couples should use it as a safeguard. A postnuptial agreement can help relieve tension or anxiety over finances. Postnuptial agreements also give married couples an opportunity to be honest with each other, and can help foster open communication.
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