Most everyone knows about prenuptial agreements. They’re becoming increasingly common for couples of all ages and income levels who are about to marry. Fewer couples, however, consider the value of a postnuptial agreement.
Whether a couple got a prenup before they married or not, putting a postnup in place can address the assets they’ve accumulated (separately and together) during the marriage. The only way to update a prenup is to get a postnup. Therefore, if a prenup is no longer relevant to a couple’s current lives and finances or if there are sections that could potentially be ruled invalid, getting a postnup is an important step towards continuing the protections initially addressed with the prenup.
A postnup can also help protect both spouses if their lives have gone in different directions than they anticipated when they married. For example, if one spouse ended up being a stay-at-home parent while the other built a successful business or medical practice, a postnup can address how much spousal support and property they’ll receive in a potential divorce.
An alternative to community property requirements
A postnup can be particularly valuable in California because it can help couples avoid the state’s community property law. Under California law, if a divorcing couple can’t negotiate their own property division agreement, the court is required to ensure that each spouse receives an equal amount of assets accumulated during the marriage.
In a postnup, a couple can detail how they want to divide all of their assets, regardless of what the law says. As long as it’s not an egregiously unfair division, a judge will typically approve it in a divorce.
A postnup can serve multiple purposes. Here, we’ve discussed just a few. As with a prenup, each spouse should have their own legal representation to help ensure that their rights and interests are protected.