Why many married couples decide to draft postnuptial agreements

Marital agreements have become substantially more common in recent years. Prenuptial agreements are now relatively popular among younger generations. They may have witnessed their parents go through messy divorces and hope to avoid a similar situation if they ever divorce.

Older couples may also choose to draft prenuptial agreements when starting blended families or remarrying in their retirement years. Their desire to protect their children and clarify their marital expectations can lead to the negotiation of a prenuptial agreement.

The trend toward the use of marital contracts also includes those already married. Postnuptial agreements have become far more common. Why are so many of those who have already entered a marriage choosing to negotiate a postnuptial agreement with their spouses?

Concern about the state of the marriage

Sometimes, couples grow apart slowly over many years or feel pressure on their relationship when their children move out of the family home. Other times, one spouse may have learned about misconduct on the part of the other. Issues ranging from gambling and substance abuse to infidelity can leave people concerned that divorce might be on the horizon.

Couples draft postnuptial agreements in an effort to repair their marriages and establish new expectations for the relationship. They may also negotiate postnuptial agreements as a last-ditch effort to avoid a potentially acrimonious divorce.

Changing personal circumstance

Sometimes, couples decide to draft postnuptial agreements due to overall changes for the family, not necessarily marital hardship. Perhaps one spouse is about to leave their job to raise the couple’s children. If they do not have a prenuptial agreement in place, the spouses might negotiate a postnuptial agreement establishing certain financial protections for the spouse making career sacrifices.

Other times, the postnuptial agreements might be beneficial because one spouse intends to start a small business. The agreement can shield one spouse from liability related to the business while also protecting the company from division in a divorce.

Couples may find that negotiating postnuptial agreements helps them feel more confident about their marriages. In some cases, the process of clarifying what happens in a divorce can deter people from filing. Other times, spouses who choose to divorce can sidestep the messy litigation that may arise when couples have valuable shared property or children in the home.

Higher-asset households are at risk of more contentious and expensive divorces, making postnuptial agreements smart choices for those concerned about the possibility of a future divorce. Establishing a marital agreement can be beneficial in a variety of circumstances. Those preparing to get married and those already married can establish contracts that take much of the risk out of both marriage and divorce alike.