Forex Articles

Ah, marriage. The beautiful union of two people – and their assets. Alas, nearly half of married couples aren't able to stick it out for the long haul. According to the CDC/NCHS National Vital Statistics System, 44% of marriages end in divorce. Another study puts the divorce rate as ranging from 67% to 80% for second marriages .

Perhaps this is why postnuptial agreements are on the rise. Between 2009 and 2012, more than half of divorce attorneys (51%) saw in increase in postnuptial agreements, according a survey by the American Academy of Matrimonial Lawyers (AAML).

A postnuptial agreement is a legal contract signed by a married couple at any point after the wedding. This agreement not only dictates how the couple's assets will be divided, but also often a number of other provisions affecting the conduct of the marriage, from the division of household chores to infidelity to the allowable number of mother-in-law visits. Mostly, however, a postnup is about money – as are the reasons for needing one.

1. One (or both) of you entered the marriage with beaucoup bucks.

Divorce attorneys agree that postnups are a must-have for spouses with significant pre-marital assets, a large estate or the expectation of future assets from a trust fund or inheritance. In these situations, a postnuptial agreement can help ensure each spouse leaves the marriage "whole" – that is, with the holdings he or she brought into it.

2. You have children from a previous marriage.

Not that we're trying to play on fairy-tale stereotypes of the evil stepparent, or anything. But in cases of co-mingled families, asset allocation can get complicated. In a postnup, you can determine what (if any) share your spouse will receive of your estate should you get divorced or die, helping to ensure that your offspring receive the inheritance you want them to have. If you do not sign a postnuptial agreement that spells out these details, most states will automatically give your current spouse a share of your estate upon your death. Some State Laws Dictate Division Of Joint Property in cases of divorce, as well.

3. You own a profitable business.

A postnup can also protect any income or assets you earn during the marriage. This could be particularly important for spouses who own their own companies. Without a postnup, an ex-spouse may be entitled to a percentage of the business or its earnings.

4. You hated the idea of a prenup.

Even some financial advisors feel, negotiating a prenuptial agreement before your wedding is a pointless, stress-inducing process that, by raising the specter of divorce, can doom a marriage before it begins. Many couples opt for postnups simply because they don't want awkward discussions about the division of assets before the "Happy Day." Though never pleasant, such negotiations might proceed more smoothly once the newlyweds have settled down into their marital routine.

5. You recently received a large inheritance.

If one of you unexpectedly receives a sizeable bequest or a gift from a family member, you may want to consider a postnup. Under normal circumstances, that new asset may well become part of your joint assets. A postnup can help keep it earmarked just for you, in case of a marital split.

In certain marital situations, a postnup is strongly recommended for spouses who didn't sign a prenup. Key reasons are that one or both partners has significant pre-marital assets – or children from previous marriages. If your marriage falls apart, a postnup can help you avoid a nasty, expensive divorce battle. If it doesn't, it can stave off fights over the inheritance between the surviving spouse and other heirs. Because everything is already contractually spelled out, you and your spouse both know exactly who gets what – with little room for argument. For more, see Create A Pain-Free Postnuptial Agreement.