Relationships often go through phases: dating, engagement, a honeymoon period, married life, conflict and divorce. Divorce can come with a myriad of considerations such as children, assets and spousal support.
Prenuptial agreements are a great proactive approach to avoiding problems before they begin. You may wonder, is it too late if you didn’t have the foresight to make a prenuptial agreement before your marriage? Now, this is where it may make sense to draft a postnuptial agreement.
How do pre and postnuptial agreements differ?
When it comes to property division in a divorce, Georgia is an “equitable distribution” state. This means that it may not be an equal 50/50 split if the court decides how the property, assets and debts are split.
Marital agreements are a powerful tool to aid couples in the division of their assets if they divorce. You draft a prenuptial agreement before you marry. You and your spouse may draft a postnuptial agreement sometime during the marriage and before the divorce.
When is it ideal to consider a postnuptial agreement?
Couples may revisit the topic of having a postnuptial agreement at any time during their marriage. Here are some factors that could make a postnuptial agreement a good idea:
- Inheritance: Postnuptial agreements can establish what assets will be inherited by children, family members or friends.
- General clarity: It can give both spouses clarity on the inventory of all their assets and debts.
- Special considerations: Postnuptial agreements can document the allocation of finances that a parent may receive in exchange for sacrificing their career to take care of their children.
- Protection from irresponsible behavior: Spouses sometimes start making irresponsible financial decisions when they’re facing a potential divorce. A postnuptial agreement can protect assets and spousal rights from either spouse’s irresponsible actions.
Divorcing couples don’t have to allow the court to make property division decisions for them. You can take a proactive approach and draft a prenuptial or postnuptial agreement now to ensure that no matter what happens in the future, you’ll have the clarity and peace of mind of knowing that you’ve already decided on the most pressing matters.