Prenups versus Postnups: Which One is Right For Me?
Most couples don’t envision their marriage ending when they tie the knot. They take “till death do us part” seriously. At the beginning of the marriage, they would never consider getting a prenuptial agreement to determine what happens to assets if the marriage should end. They’re in the honeymoon phase when everything seems perfect. Fast forward a few years and suddenly, the marriage isn’t as stable as the couple believed it would be. Divorce is on the horizon. Now, a battle is brewing over assets, income, and retirement accounts.
What could have avoided the aforementioned situation? A prenuptial or a postnuptial agreement. In this article, the Philadelphia family law attorneys at The Law Offices of Lauren H. Kane will discuss the key benefits of both types of agreement and how they’re employed successfully to mitigate the potential fallout from a divorce.
What’s the difference between a pre- and postnuptial agreement?
A prenuptial agreement, or a prenup, is a legal contract entered into before a marriage takes place. The prenuptial agreement can contain several provisions including how assets, debts, and other financial matters will be settled in the case of divorce. A postnuptial agreement, on the other hand, serves the same purpose but is created during the marriage.
The big difference between the two is the timing. A prenup is established before the marriage while a postnup is established during the marriage, essentially addressing the financial landscape after the couple has built their life together.
Postnup or prenup: which is right for us?
They say timing is everything. When it comes to nuptial agreements, that is very true. At the beginning of a marriage, you may not have significant assets to protect. Then again, you may be bringing a business venture into the marriage that you want to remain your sole property regardless of what happens down the road. In this case, a prenuptial agreement to protect the business from equitable distribution may be the best option for you. Couples also add provisions to protect their retirement accounts, or separate certain bank accounts or debts from the marital estate.
The more complicated your financial situation is, the more likely it is that you will want a nuptial agreement in place to protect your interests in the case of divorce. These agreements can save you thousands of dollars in litigation costs down the road. The contract, once signed, is broadly enforceable.
Postnuptial agreements are useful for couples who establish their financial success during the marriage. In these cases, the couple may be interested in keeping certain assets, businesses, or properties out of the marital estate. A pre- or postnuptial agreement is highly effective at protecting assets from equitable distribution.
Talk to a Philadelphia Family Law Attorney Today
The Law Offices of Lauren H. Kane represent the interests of those seeking to draft a prenuptial or postnuptial agreement. Call our Philadelphia family lawyers today to schedule an appointment, and we can begin addressing your concerns right away.
