What is a Postnuptial Agreement and How Could It Benefit Me?

A Postnuptial Agreement is an agreement entered into by two people who are already married. The purpose of a Postnuptial Agreement is to contend with issues of equitable distribution and spousal maintenance/support. It is often a good idea to enter into a Postnuptial Agreement if there has been a significant change in your finances and assets after you were married. Other reasons a married couple made decide to enter into a Postnuptial Agreement is if there has been issues of infidelity in a marriage, if a spouse has mismanaged funds, or for estate planning purposes.

A Postnuptial Agreement can clearly delineate and define what is a spouse’s separate property and what is marital property for purposes of equitable distribution. If a spouse inherits property or monies from a family member, while that is considered separate property in New York unless it has been commingled or transmuted into marital property, the agreement can be drafted to ensure that the property remains your separate property.

If one spouse owns a business or businesses, the married couple can negotiate and settle how the spouse’s business or businesses will be divided. It can also deal with whether the spouse who is not the business owner has any interests in the business or businesses.

Spousal maintenance can also be dealt with in a Postnuptial Agreement. You can decide whether you will both waive on spousal maintenance or whether spousal maintenance will be paid upon a divorce.

One of the main benefits of a Postnuptial Agreement is if a married couple does eventually divorce, many of the issues of equitable distribution, if not all, have already been resolved. It is important that if you are considering a Postnuptial Agreement that you consult with an attorney so that they can advise you on how best to proceed and protect your interests. It is equally important to work with an attorney to draft your agreement so that it is properly drafted and executed to ensure its validity.