What Are the Benefits of a Prenuptial or Postnuptial Agreement?

 Posted on May 06, 2022 in Family Law

It is often said that around 50 percent of all marriages end in divorce. The actual statistics are unknown, but even if the divorce rate is not that high, the fact remains that a significant percentage of marriages do not last. For those who are planning to get married or who are in a happy relationship, divorce may not seem to be likely. However, it can be a good idea to consider the possibility that a relationship will end, and by making decisions ahead of time through a prenuptial or postnuptial agreement, a couple can help avoid conflict and uncertainty in the future.

Prenups Vs. Postnups

A prenuptial agreement (prenup) will be signed by a couple before their wedding, while a postnuptial agreement (postnup) can be created at any time after spouses become legally married. Both types of agreements can address the same issues, including detailing how certain issues may be handled during a couple’s marriage and making decisions about what will happen if their marriage ends through divorce, legal separation, or the death of either spouse.

Generally, prenups and postnups will be limited to addressing matters related to a couple’s property and finances. An agreement may specify that certain assets owned by the spouses will remain separate property rather than marital property, or it may decide on how different assets and debts will be divided in the event of a divorce. A prenup or postnup may also include details about spousal maintenance, including specifying whether one spouse will pay support to the other or deciding on the amount that will be paid and the duration that payments will last. However, prenuptial or postnuptial agreements generally cannot make decisions about child custody, and they cannot reduce the amount of child support that a parent would be required to pay by law.

Is a Prenup or Postnup Right for You?

There are a number of ways that a prenuptial or postnuptial agreement can benefit a couple, including:

• Better understanding of financial issues - By discussing the issues that will be addressed in a prenup or postnup, a couple can help avoid potential conflict about how they will handle finances in the future. They can also have a better understanding of what will be at stake if they encounter relationship difficulties and begin to consider divorce. Ultimately, addressing financial issues before they become a problem can make a marriage stronger.
• Protection of a family-owned business - If a person is a business owner, they will usually want to avoid any issues that may threaten their ability to continue owning and managing the company. By deciding ahead of time how ownership of a business will be handled, a person can make sure a family business will not be affected by a potential divorce.
• Providing for the needs of children - If either spouse has children from a previous relationship, they may be concerned about whether property they planned to use to provide for their children’s needs will be affected by a potential divorce. A prenup or postnup can set aside certain assets to ensure that children will have the necessary financial resources, no matter what happens.
• Addressing disparities in income - If one party is entering a marriage with a higher income or larger assets, they may want to take steps to protect themselves financially through a prenuptial agreement. However, a couple can also address differences in income during their marriage. For example, if one spouse plans to be a stay-at-home parent, a prenup or postnup can make sure that spouse will have the financial resources to provide for themselves and their children following a potential divorce.

Contact Our Joliet Prenuptial Agreement Attorney

The Foray Firm can help you determine whether a prenuptial or postnuptial agreement may be right for you, and we can work with you to negotiate an agreement that will meet your needs. Contact our Homewood prenup lawyer today at 312-702-1293 to learn more about your options.

Sources:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&ChapterID=59

https://money.usnews.com/money/personal-finance/family-finance/articles/the-pros-and-cons-of-prenups

https://www.brides.com/guide-to-prenups-5094310