The main difference between a prenuptial agreement and a postnuptial agreement is the timing of when they are made. A prenuptial agreement is made before a couple gets married, while a postnuptial agreement is made after a couple is already married. If a couple does not plan to marry but intend to live together as spouses, a cohabitation agreement (made before or after the couple began living together) can accomplish the same purpose.
PRENUPTIAL AGREEMENT
A prenuptial agreement, also known as a premarital agreement or prenup, is a legally binding agreement that is made by a couple before they get married.
The most common reasons why you should get a prenup are if you have significant assets, income, or children from a previous marriage that you wish to protect and provide for in case the pending spousal relationship fails.
The purpose of a prenup is to define the financial and property rights of each spouse in advance, in case there is a separation or divorce, or the death of one spouse.
They can cover a wide range of potentially sensitive issues, including:
- Protection of premarital assets
- Division of assets
- Spousal support
- Property ownership
- Business ownership
- Division of debt
Prenups must meet certain legal requirements in order to be legally binding. For instance, infidelity clauses and future-focused provisions related to child custody and child support won’t hold up in court.
There are two parts to getting a prenup. First, it is having the conversation and getting on the same page as your significant other on the need for a prenup, and what should be in it. Practically speaking this conversation is easier to have before marriage.
Then, you must complete the legal process of getting it drafted and signed. For this part, it is a good idea to consult with a lawyer to ensure that your prenup is properly drafted.
POSTNUPTIAL AGREEMENT
On the other hand, a postnuptial agreement, also known as a post marital agreement, is a legally binding agreement that is made by a couple after they are married.
Like a prenup, a postnuptial agreement is used to define the financial and property rights of each spouse in the event of a divorce or the death of one spouse. It can cover all of the same things as a prenup.
The most common reason for a postnuptial agreement is to make changes to financial arrangements, often because of a significant financial event.
As with prenups, consulting with a lawyer when drafting one is recommended.
Note: The information in this blog is not legal advice. Consult a lawyer for advice for your situation.