What Is A Post Nuptial Agreement?
A postnuptial agreement is a legally binding agreement between spouses entered into after marriage.
It differs from a premarital agreement in that the agreement is made after marriage. And unlike a premarital agreement, a postnuptial agreement can bind the spouses regarding other issues that a prenuptial agreement cannot.
A postnup agreement deals with issues such as tax and estate planning, retirement planning, property agreements, and child support. Our law firm can help.
What Do They Include?
In general, a postmarital agreement deals with issues such as tax planning, estate planning, retirement planning, property agreements, and child support. It can include a division of assets and liabilities upon death or dissolution. It can be very important for blended families to enter into one or more post marital agreements.
Post nuptial agreements are a part of a comprehensive estate plan seeking to minimize taxes. They are used to facilitate wealth planning purposes such as strategic gifting, estate tax minimization & planning, and wealth protection. They are also needed to override the default provisions of ERISA if extensive retirement planning is needed. In addition, they are also used for business and business succession planning. And so much more!
Some Reasons to Get a Postnuptial Agreement
- To resolve child support issues before they arise
- Debt consolidation/clarification
- Tax & Estate Planning
- Reduce disagreements and facilitate settlement in case of divorce
Tips and Advice for Making the Most Out of Your Postmarital Agreement:
Plan ahead. You should have a goal or problem to solve in mind before even considering entering into one. You should have a good idea of how you’d like to resolve the issue. And you should have a good understanding of whether or not both parties need a lawyer.
Be realistic and legally sound. A post marital agreement cannot solve every problem known to man, but it can prevent some big problems in the future. It also cannot reduce your tax bill to zero, but can prevent you from paying some gotcha taxes and fees. It isn’t an estate plan, but it does supplement one.
Understand the property rules. Arizona is a community property state. That means that by default you and your spouse share in the fruits of each other’s labors. In other words, you each have equal rights to the income of the other. However, separate property is still separate. Separate property includes things such as assets acquired prior to marriage, inheritances, and gifts to only one spouse.
Postnuptial Agreements: FAQs
Who Should Get a Postnup agreement?
Anyone who cares about minimizing taxes, leaving a legacy, or planning for contingencies.
What are the requirements for a valid postnuptial agreement?
The transaction should be free from any hint of fraud, coercion or undue influence;
Both parties acted with full knowledge of all the properties involved and all legal rights therein; and
The agreement is fair and equitable.
Do both my spouse and I need an attorney if we want a postnuptial agreement?
If you are represented by an attorney, your spouse should be represented by an attorney.
Is a postnuptial enforceable?
Yes, they are legally enforceable documents so long as they are found valid.
How does a post nup work?
A post nup works just like any other contract. It’s just a contract between you and your spouse.
How much does a postnuptial agreement cost?
Simple post nuptials have an average cost of $2,000 with a range of $1,000 to $3,000.
Complex issues can cost upwards of $7,000 to $10,000 according to postnuptialagreements.org
What cannot be included in a postnuptial agreement?
A postnuptial cannot predetermine child custody, family matters, and employment circumstances.
Can I write my own postnup?
While you can write your own legal documents, if you’d like them to be legally binding it’s advisable to engage an attorney.
Can a postnuptial agreement protect inheritance?
Yes, protecting an inheritance is one of the best reasons to enter into a postnuptial agreement.