Over the course of any marriage, financial and familial circumstances evolve. Expectations and plans couples have when entering into a marriage may look very different when divorce is imminent.
In such situations, post-nuptial agreements can play a role in simplifying the process and providing clarity for both parties involved.
Assets and debts
Post-nuptial agreements serve as a valuable tool for couples to define and allocate their assets and debts. Clearly outlining the division of property and financial responsibilities can prevent disputes and lengthy legal battles during divorce proceedings.
Alimony and spousal support
As of 2019, alimony and support payments are no longer tax deductible by the payer, and the recipient must include them in his or her income. If you married before this new law came into effect, assumptions about how support impacts both parties after divorce require revisiting. Establishing predetermined terms for financial support clarifies expectations and eliminates tax time surprises.
Child custody arrangements
Once children arrive, post-nuptial agreements can make it easier to get divorced by sorting out who gets custody. If the agreement has clear rules about who the kids live with, when they visit and what each parent is responsible for, it can prevent arguments. This makes things more stable and predictable for the kids during a tough time.
Emotional stress
Divorce is an emotionally charged process, and the uncertainty surrounding financial and legal aspects can exacerbate the stress for both parties. Post-nuptial agreements act as a roadmap, guiding couples through the divorce process.
Preserving privacy
Another good thing about post-nuptial agreements is that they help keep the divorce private. When couples talk about sensitive topics in the agreement, they can avoid court proceedings, keeping things more confidential. This can be important for personal and work reasons.
For many couples, drafting a post-nuptial agreement streamlines the divorce process and contributes to a more amicable separation.