Post Nuptial Agreement

Change in Financial Circumstances?

A post nuptial agreement is not as common as a prenuptial agreement, however it is just as important.  Imagine you have been married for some time, you may even have raised a family and/or built up a business empire together.  Marital assets are split down the middle normally, however it may be that one spouse supported another and then when it comes to splitting up the proposed agreement seems unfair.  This example is extreme, but we have known couples where one mother stopped working to raise the family, the husband was an entrepreneur who then brought in investors for the business.  Moved money around and made it appear the business was running at a loss.  At the time of separating it appeared like there was no money for it to be split, the wife had never worked in the business day-to-day but it was their finances that set it up (initially) and because they were married with the house as security, she was due a stake in the business.

This is where it gets into a grey area, as opposed to black and white.  People tend to forget what the other party brought to the table, what bank loans have been used for, what assets they individually have as well as jointly.  A Post Nuptial Agreement gets things down on paper and is legally binding.  Most couples lives improve as they work hard for their future, whether they are doing things jointly or together, they normally support each other.  If they separate it could be complicated to divide things, this is when the post nuptial agreement makes life easier.

Post Nuptial Agreement is Legal

If you have a rough idea of what you think is fair and reasonable, speak to your partner, then get legal advice.  A post nuptial agreement can take a few months to compile and get signed but it is worthwhile reviewing every 5 or 10 years.