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What You Need To Know About Prenuptial And Postnuptial Agreements

Media reports and anecdotal evidence suggests that more couples – especially millennials – are getting prenuptial or postnuptial agreements.

Nearly half of all marriages end in divorce, and most people are not aware of the financial pitfalls that marriage can bring. At Chase, Berenstein and Murray, Counselors at Law, we meet with many people who dearly wish they had taken the time to create a prenuptial or postnuptial agreement.

What’s Included In A Prenuptial Agreement?

A prenuptial agreement is a contract that deals with financial matters connected to a marriage. Prenups can be long and detailed or short and sweet. They are especially important if you have significant assets, own a business, have high earning potential, or have been married before.

A prenup can address a wide range of issues, including:

  • Ownership/possession of specific items, such as family heirlooms
  • Ownership of property
  • Ownership of retirement and investment accounts
  • Responsibility for debt
  • Inheritance for children from a previous marriage

This list represents only a fraction of the issues you can address in a prenup. There also are issues that a prenup cannot deal with, including child support, child custody, provisions that involve illegal activity and nonfinancial matters.

Why Choose A Postnuptial Agreement After Marriage?

A postnuptial agreement is basically the same as a prenuptial agreement, except for the timing: postnups are created after a couple has already gotten married. There are many reasons a couple may choose to enter into a postnuptial agreement after they’ve been married, these include:

  • To revise a previously agreed-upon prenuptial agreement
  • To address significant differences in a spouse’s earnings
  • To create a plan for the illness or death of a spouse
  • To manage marital debts and simplify who is responsible for what

If a couple is contemplating a separation or divorce, entering into a postnuptial agreement can provide direction in the event they decide to proceed. Sometimes, unexpected events arise in a marriage, and a postnuptial agreement can help a couple negotiate how to handle these events. It can also help a couple create and formalize their plans for the future.

Get Answers To Your Prenuptial Or Postnuptial Agreement Questions

Find out how Chase, Berenstein and Murray, Counselors at Law, can help you with a prenuptial or postnuptial agreement. Call us at 650-642-3897 or send an email today.