Postnuptial Agreements: More Popular When Considering Asset Protection
Studies have shown that financial problems continue to be one of the main causes of divorce. When looking at marriage as a contract, financial matters are automatically an issue. A majority of people are familiar with prenuptial agreements and their focus on protecting assets when entering into a marriage, but fewer may be as familiar with the actions of a postnuptial agreement.
A postnuptial agreement is as it sounds. It is a contract between a married couple and is created after the time of a wedding. Either type of agreement may address the following:
- Ownership of property or residence;
- Treatment of inheritances or trusts; and
- Alimony details or spousal support.
According to a CNN.com article, postnuptial agreements are starting to increase in popularity. Over half of the attorneys surveyed by the American Academy of Matrimonial Lawyers reported an increase of postnups over a five-year period. There are several reasons experts point to as reason couples might choose this route, but one main factor is to determine how to handle finances in the future. The creation of a postnup does not mean an impending divorce. But in many cases, it is the prevention of one.
A newsletter published by the American Bar Association references four factors a person should list when considering a postnuptial agreement:
- Assets collected during a marriage that a person believes solely belongs to him or her;
- Gifts from friends and relatives that both spouses have used that were received after a marriage;
- Notation of any purchased items from a person’s personal funds; and
- Any new items received or purchased after a marriage.
Timing is one of the main differences between a prenuptial agreement and a postnuptial, but the accrual of assets also comes into play when involving a marriage that has spanned over several years. It is important to fully disclose information to your attorney, if you are seeking either type of agreement to ensure asset protection in the future.
Financial matters are part of any marriage. Our attorneys are here to help protect your rights and best interests when it comes to entering into a marriage or facing the dissolution of one. If you seek legal counsel regarding a pre or postnuptial agreement in Illinois, contact an experienced Geneva family law attorney today.