Putting a solid prenuptial agreement in place before marriage is a good idea for just about any couple, but particularly so when one or both of the soon-to-be spouses have individual assets to protect.
Much like an estate plan, a prenup may become outdated as years go by. It’s always wise for couples to take a look at that prenup from time to time and see if circumstances warrant a change. An agreement modified after marriage – whether it’s a month after or a decade after – is called a postnuptial agreement. Let’s look at just a few reasons why that can be highly valuable.
Changes in a couple’s financial picture
A couple may accumulate considerable assets after they marry that they couldn’t have imagined ever being able to afford. It’s wise for a postnup to address those assets – particularly if they don’t plan to divide them equally as under Texas’ community property law. The same is true if one spouse earns considerably more than the other and has contributed far more than half to acquire their marital assets.
A postnup can also help if one spouse has accumulated a large amount of debt on their own. It can help protect the other spouse from getting saddled with half of it if they divorce.
A change in roles
While both spouses might initially work, one spouse may decide to become a stay-at-home parent and largely leave the workforce. A postnup can help them ensure that they get the assets and spousal support they need in a divorce if they aren’t able to return to working right away or need time to refresh their skills and gain experience or education before they can become self-supporting.
Helping an eventual divorce proceed more smoothly
Some couples put a postnup in place, whether they had a prenup or not, if they hit a rough patch in their marriage – even if they decide to stay together. Having a sound, current postnup can make an eventual divorce, if it occurs, faster, less complicated and combative and less costly.
Just like with a prenup, it’s crucial for each person to have their own legal representative when creating or updating a postnup. This helps to better ensure that their rights are protected and that the agreement will hold up in court if it’s needed.
