Undoubtedly, you have heard of prenups, which are premarital agreements that determine ahead of time the terms of your divorce, particularly asset division. Creating a prenup comes with the benefits of establishing open communication, securing your financial future and preventing fighting over property in the event of divorce.
However, you may not have heard of a postnup, or postnuptial agreement. This is a document you create any time after you are married to further address assets and related estate planning issues. It is similar to but not the same as a prenup, and therefore has slightly different legal requirements. You may benefit from making a postnup if any of the following circumstances apply to you.
You lack a prenup
Do you not have a prenup and now regret it? Are you and your spouse contemplating a legal separation? Postnups make it not too late to discuss and determine divorce terms. It can also address finances in relation to a spouse with an addiction or a child who needs lifelong care.
You leave your career to be a stay-at-home mom
As rewarding as motherhood is, leaving your career to stay home and raise children has detrimental effects on your future financial security should your marriage end. You do not have to give up your dream, however. A postnup establishes a numerical value to your choice to no longer work, accounting for lost wages, missed opportunities for growth and decreased salary upon reentering the workforce. It also serves as evidence that you both debated over and agreed to the decision.
Your assets have increased significantly
Even if you have a prenup, it cannot cover every financial scenario possible. Whether you have won the lottery or started a business, you need to make it clear what will happen to these newly acquired assets in a divorce. In addition, a postnup can change the terms you set in a prenup and update it to current Florida law.