Many people have heard of prenups or prenuptial agreements, but postnuptial agreements also exist and serve a similar purpose. Understanding what makes a postnuptial agreement valid is crucial in protecting your legal rights and financial security. Reach out to a skillful Bergen County family lawyer to discuss your options and obtain advice regarding postnups and their benefits.
What is a Postnuptial Agreement?
A postnuptial agreement, commonly referred to as a postnup, is a legally binding document that two spouses can sign after they are already married. It is similar to a prenuptial agreement in the sense that its purpose is to outline the way that finances and assets will be handled if the marriage were to end in a divorce or death.
After two individuals are already married they can determine the details of who will maintain ownership of various financial assets if they get divorced as well as the responsibilities that each of the spouses has during the marriage. The following are issues commonly addressed in a postnuptial agreement.
- How marital assets and debts will be divided
- Spousal support that one spouse will provide to the other
- What will happen to retirement accounts
- How property and inheritance will be passed on to beneficiaries
The above and more can be included in a postnup and the terms can be enforced if the document was created in a legal manner.
What Makes a Postnuptial Agreement Valid?
There are various elements of a postnuptial agreement that must be present and proven for the document to be considered valid. Two spouses cannot simply write anything on a piece of paper and call it a postnup. In addition to being written, signed, and notarized, the following elements are required for a postnuptial agreement ot be considered valid.
- Full disclosure: Both parties must have provided full disclosure at the time of the creation of the postnup. This means that they include all financial assets and personal circumstances and nothing is hidden from the other or the attorneys involved in the document’s creation.
- Legal representation: New Jersey requires that both parties in a marriage be represented by separate legal counsel when signing a postnuptial agreement. This ensures that both spouses understand the terms of the document and that they are not being taken advantage of.
- Coercion: Neither spouse can enter into a valid postnuptial agreement while under duress or coercion. They must agree to sign the contract of their own free will without pressure, intimidation, or persuasion from the other party or anyone else.
- Fair: Finally, the postnup must be fair and equitable. The contract cannot benefit one spouse exponentially more than the other or leave an individual financially destitute.
If any of the above is not present in your postnup then there is a chance that a judge could deem the document unenforceable.
Postnuptial agreements can have significant implications for life after marriage. To ensure your legal rights and financial situation are protected, obtain representation from an experienced attorney today.
