Like prenups, postnups can help prepare couples for divorce or potential conflicts in their marriage. Postnuptial agreements are legally enforceable but only under certain conditions. If you are considering a postnup in your marriage reach out to a Memphis, Tennessee prenuptial agreement lawyer for more information on spousal contracts.
What is a Postnuptial Agreement?
A postnuptial agreement is essentially the same as a prenuptial agreement but it is created and signed after the couple has already gotten married. It is a legal document that a married couple can create to outline their affairs and determine what will happen in the event that they get divorced. It can cover:
- How property and assets will be divided between each spouse if the marriage ends, like bank accounts, real estate, personal property, etc.
- Whether one spouse will pay alimony to the other and for how long
- How marital debts will be divided if the marriage ends, like mortgage loans, credit card debt, other loans, etc.
- If and how inheritance or gifts will be divided if the marriage ends
Prenuptial agreements are generally used to protect individual assets before marriage. However, if you did not sign a prenup, postnuptial agreements can be useful for couples who have experienced significant changes in their financial situations. If one spouse received a substantial inheritance or started a successful business it may be important to protect these new assets with a postnup.
What Makes Postnuptial Agreements Legally Enforceable?
Certain standards must be met before a postnuptial agreement can be considered legally enforceable. Because the couple has already entered into a legally binding contract by getting married, a postnuptial agreement is scrutinized more closely compared to a prenuptial agreement. It is important to ensure that all requirements are met, otherwise, the validity of the postnup could be challenged and it may not be enforceable.
- The document must be in writing. Oral contracts do not count as valid postnuptial agreements.
- Both parties must sign the contract and it must be notarized.
- The agreement must be entered into voluntarily and knowingly by both parties and without any form of coercion or manipulation.
- The contract must be specific and use unambiguous language.
- Both parties must be of sound mind and understand the terms they are agreeing to.
- The terms must be fair and equitable for both parties.
If the above terms are met a court may enforce the postnuptial agreement.
When Will a Postnup Not Be Enforced?
There can be potential issues or challenges when enforcing the postnuptial agreement. If there is a significant change in circumstances from the time that the document was signed to the time of divorce a court may deem the agreement no longer fair and not enforce it.
Additionally, if one party misrepresented their financial situation or took fraudulent action then the agreement was made based on false information and the agreement could be challenged. While a postnup can be beneficial for both parties in a marriage, it is not as easily enforceable as a prenup. Speak with an attorney for more information.
