While the idea of a “prenup” is well-known, postnuptial agreements are often overlooked. These agreements, signed after marriage, can be a vital part of your Minnesota estate plan. They provide clarity and protection, particularly as your life and circumstances change.
What is a Postnuptial Agreement?
A postnuptial agreement is a legal contract between spouses outlining the division of assets, debts, and other financial matters in the event of separation or death. This agreement can clarify property ownership (including inheritances), protect business interests, address spousal support, and specify who is responsible for debts, both old and new.
Why Consider a Postnup
There are many scenarios where a postnuptial agreement might be beneficial. For example, if it’s a second marriage and you want to protect assets for children from previous unions. They are also useful when financial circumstances significantly change with new wealth, debts, or inheritances. Furthermore, a postnup can safeguard business ownership and create peace of mind by providing clear expectations and reducing potential conflict.
Example: Imagine you started a business before your marriage. A postnup can ensure the business remains your separate property, protecting it from potential division in case of a divorce.
Important Considerations
It’s crucial that both spouses fully disclose their assets and debts to ensure the postnuptial agreement is valid. Each spouse is required to have independent legal representation for guidance and protection of their best interests. Along with disclosure and legal counsel, it’s vital that the postnuptial agreement itself is fair to both parties. This helps ensure it will be upheld if challenged.
A Brief Note on Prenups
While prenups are signed before marriage, postnups offer the advantage of addressing changes in life circumstances that occur after you’ve said “I do.”
Getting Help
If you’re considering a postnuptial agreement, a Minnesota estate planning attorney can guide you through the process. Let’s discuss whether this legal tool is right for protecting your assets and your legacy. Schedule an appointment by contacting our law firm at 763-244-2949 today.
