Many people are familiar with premarital agreements, also sometimes called prenups. It is understandable that couples enter into these contracts prior to marriage to protect their assets in case of divorce. However, postnuptial agreements cause a little more confusion because people often wonder why a couple would need a contract after they are already married. Below are some of the most common reasons couples create postnuptial agreements.
No Time for a Prenup
Sometimes a couple knows that they would like to create a premarital agreement prior to the wedding, but they simply run out of time. Planning a wedding takes a lot of time and sometimes, a prenup is one task that just never gets done. Or, the couple may want to protect their assets, but they also do not want to think about divorce during one of the happiest times of their life. When either of these is the case, the spouses may choose to create a postnuptial agreement once they have settled into a life together.
The Couple is Working on Reconciliation
In many cases, divorce starts to look like a very real possibility in a marriage and the spouses are not protected by a prenup. In these situations, there has been a serious breakdown of the marital relationship, but at least one spouse may want to try to work out the issues. As a condition of attempting to work things out, one spouse may want to create a postnuptial agreement first....