Prenuptial agreements are legal documents that identify what assets each spouse brings into a marriage, thus, allowing them to take said assets with them in a divorce. Prenups likely aren’t the cause of divorce, despite common belief. But that doesn’t stop people from passing up a strong asset protection plan.
When couples realize that they may want a prenup, some may fear it’s too late. After all, a prenup is, by definition, something that’s created before the marriage begins – but it’s not your only option. Here’s what you should know:
Post-nups are an alternative to prenups
In essence, a prenup is nothing more than an asset protection plan and a private contract. For couples who are already legally married, there’s still plenty of opportunity to create an asset protection plan that will benefit both sides through the use of a postnuptial agreement. This legal document works just like a prenup but is made after marriage.
A postnup isn’t just beneficial for people who missed out on a prenup but it can even void an already existing prenup. What this means is that couples may negotiate new terms to an old agreement or create a post-nup to protect assets they now want to include in their protection plan. For example, one spouse may have started a business since the marriage began and wants it included in the postnup. Or, maybe one spouse inherited money and they don’t want to risk losing anything they purchase with it, like a second home.
You shouldn’t have to fear the worst in a divorce. You may want to know your legal options to protect your assets.