What is a postnuptial agreement?

Before marrying, an agreement on how to handle assets and liabilities in case of an ended marriage is the prenuptial agreement. Postnuptial agreements focus on one issue that occurs during the marriage. Both are legal contracts that bind both parties. 

Before marriage, you cannot always predict how your life will turn out. A postnup can benefit married couples by addressing issues that occur later in marriage, explains Forbes. 

What does a postnup accomplish?

Prenups often handle hypothetical situations. For instance, you may include provisions if you invest in real estate or if one of you leaves your job. The problem with a prenup is that you may not be able to plan for every hypothetical. The postnup accomplishes a way to include situations that you did not initially plan for. 

When does a couple need a postnup?

If there are any changes in your career or assets through the course of your marriage, you may want to consider a postnuptial agreement. If one spouse leaves the workforce to focus on raising children or relocates for the other person’s career, then the two may decide on more spousal support in a postnuptial agreement. 

The point of a postnup can be to ensure fairness if the marriage dissolves. There may be assets that the couple does not want to include in the marital estate. For instance, if one party inherits an heirloom, then he or she may exclude that asset from the marital property. If you decide to exclude assets or benefits, you can make up for those assets in other ways in the deal.