We tend to hear more about prenuptial agreements than postnuptial agreements, but they are both legal, binding contracts that are intended to protect the financial interests of both spouses in the event of a divorce, separation, or death. Both agreements can help set expectations as well as prevent disputes regarding assets between spouses. A postnuptial agreement can cover how marital assets will be divided, whether ongoing financial support will be given to one spouse from the other, which debts each spouse will be responsible for, and other similar issues.
Postnuptial agreements have gained traction in recent years, largely because they are often more practical than prenuptial agreements, which are typically entered into in the early stages of a relationship when both parties are still starry-eyed in love. A prenuptial agreement, if not updated frequently, may not fully cover the changes that have occurred in a couple’s lives, careers, and financial assets and obligations. A postnuptial agreement is usually entered into months or even years after a couple marries.