Every state has statutory provisions to enforce pre and postnuptial agreements. These agreements take place either before or after you are married to your partner. They are designed to protect the individual party’s assets, clearly stating what belongs to whom in case of a separation or divorce. These agreements can cover everything from your premarital house, retirement accounts, income, debt and spousal maintenance.
While prenuptials are better known, post nuptials are actually becoming more popular of late. This is because more married couples see both partners working now. Because each person has their own income and retirement benefits, as well as other assets, knowing that you are financially secure in case of a separation can take a lot of stress out of a marriage.
Purpose Of Nuptial Agreements
Divorce is an emotional period for both sides and usually, both sides feel entitled to certain things that were accumulated during the marriage. This is where divorces get messy, especially substantial income was earned during the marriage, by either side or both. Prenuptial agreement are a binding agreement entered into prior to the marriage, which articulates what belongs to whom, and what happens in the event of a divorce. One of the best examples is real property. If someone owns a home prior to marriage, the other spouse will have an equitable interest in that property, if they lived there and assisted paying down the mortgage.
The agreement eliminates the other party from having an equitable interest in your premarital property. Both parties are allowed to stipulate what they want in the agreement, as there must be agreement free of duress or coercion. In the case of premarital real property, without an enforceable agreement in place, a divorce may require you to sell your premarital property to cover an equitable interest your partners has in your home. This agreement would eliminate that.
What Is A Prenuptial?
Before you are married, you have the ability to enter a legal agreement with your partner that focuses on your assets, income and more. It can cover anything and everything you want covered. Some of the best examples, besides property, are with retirement portfolios as well as startups. If you start a business after you get married and through your efforts it becomes a success, your partner may have half ownership in that business.
Retirement accounts is often an area that shocks people when they get divorced. It does not matter that you started that job and portfolio before you met your partner. If you are married to them, and you contributed during the marriage, you will owe them half the growth since marriage. The courts will always view the success you’ve had since getting married as an equal partnership requiring a 50/50 split. That’s why, even if your portfolio is small or your business is new, it’s good idea to protect them.
What Is A Postnuptial?
Once you’re married your financial situation can change, like everyone else’s. Hopefully, you are seeing larger income and rapid growth with your investments. If that’s happening and you feel that you need to protect the results of your success in case of a separation, you can request a postnuptial agreement. This agreement can cover things you owned prior to getting married as well as anything acquired since marriage.
Legal Requirements For Arizona
Because this is a voluntary agreement both parties must agree in writing. There also must be full disclosure of assets, income and any liabilities prior to entering into the agreement. A failure to disclose certain assets may invalidate the agreement and render the agreement unenforceable.
Use your own family law attorney for any prenuptial or postnuptial agreements. It does not matter if your partner has a family friend who is a lawyer, you need your own. You want to make sure that your interests are protected in both the short and long-term. It’s not a pleasant topic for many, but these agreements can save you much heartache and uncertainty in the long-term.