Differences Between Prenup and Postnup Agreements

 Posted on March 19, 2019 in Prenuptial and Postnuptial Agreements

It is never a bad thing to plan for the worst-case scenarios in life, including what will happen if your marriage ends in divorce. Planning with your significant other for issues like the division of marital assets while you are on good terms is better than arguing about them during a contentious divorce process. Having a plan in case of divorce may seem like a negative way to start a marriage, but it can give peace of mind no matter what happens after tying the knot. 

Getting married affects all aspects of your life, including finances, social life, inheritances, and more. Meeting with an experienced family law attorney to create a legal agreement in case the marriage fails can benefit both parties in the long run. 

Here are the two most common legal agreements for couples:

What is a Prenuptial Agreement?

Also referred to as a prenup, a prenuptial agreement is a contract between two people who plan to get married. This agreement allocates property and other assets in the event of divorce or death. Prenups are most commonly associated with couples with significant wealth, especially when one person enters a marriage with substantially more income, assets, and earning capacity. Still, any couple can get a prenuptial agreement. They are especially helpful when spouses have children from past marriages, including when a family business or inheritances are matters of potential concern.

What is a Postnuptial Agreement?

A postnuptial agreement is just as described, an agreement made after the marriage ceremony has taken place. This agreement is helpful if certain decisions were not made in a prenup. Circumstances can also change in a relationship, and a postnup can help protect both spouses if they start a business together, if there are other joint investments, or if a new inheritance has entered the equation. A postnuptial agreement may also be put in place if the relationship is going through a rough patch or the couple is already separated with the intention of divorce. 

Contact a Schaumburg Prenup Attorney 

Whether you are considering a prenuptial or postnuptial agreement, contact a skilled Arlington Heights division of marital property lawyer with A. Traub & Associates today to discuss your options. Call our office at 630-426-0196 to set up an initial consultation.

Source:

https://www.investopedia.com/articles/personal-finance/070815/postnup-vs-prenup-how-they-differ.asp