Weddings are a celebration of love and commitment. While the ceremony often brings flowers, friends and family members together, a marriage certificate does not guarantee a lifetime of happiness. On the contrary, you probably have about a 39% chance of divorcing, reports TIME.
Prenuptial agreements are often an effective way for soon-to-be spouses to protect themselves financially and otherwise. If you do not have a prenuptial agreement, executing a postnuptial one may help you achieve the same goals. Here are five times postnuptial agreements usually make sense.
1. You skipped the prenuptial agreement
As their name suggests, prenuptial agreements outline financial and other expectations for partners before they marry. Of course, convincing a spouse-to-be to execute one can seem somewhat less than romantic. If you skipped the prenuptial agreement, creating a postnuptial agreement may help you achieve many of the same goals.
2. You have independent wealth
If either you or your spouse has substantial wealth before your marriage, you may not want to lose any of it after a divorce. A postnuptial agreement may help you keep the assets you had before you decided to marry your spouse.
3. You expect to receive a substantial inheritance
You may be in line to receive a substantial inheritance from a parent or someone else. With a well-written postnuptial agreement, you can be certain your newfound wealth does not become marital property.
4. You have children from a previous marriage
Postnuptial agreements may also help you take care of children from a previous marriage. When you die, most of your assets may automatically go to your surviving spouse instead of your children. With the right terminology in your postnuptial agreement, you set aside assets for whomever you choose.
5. You own a successful business
Starting and growing a business is often an effective way to achieve success. You may not, however, want to give your spouse an ownership interest. A postnuptial agreement may allow you to retain both ownership and control of your company after a divorce.
Postnuptial agreements are not right for every married couple. Still, if any of the above five situations apply to you, entering into one may make good sense.