Postnuptial agreements are less common than prenuptial agreements but can be extremely helpful in preemptively resolving disputes in some specific cases. As the name implies, a postnuptial agreement is a legally binding agreement between the spouses regarding specific financial issues that is drafted after the couple has already been married for any duration of time. The most common reason for drafting an agreement after marriage is a change in economic circumstances, such as:
- A sudden inheritance by one of the spouses
- Starting a new business
- Sudden changes in an investment
This agreement will regulate how the couple will hold the title to the property in the future, and how they will hold the property they presently own. It also regulates how their property will be divided in the event their marriage ends. The court might scrutinize a post-marital agreement under more rigorous standards than a prenuptial agreement.
For more detail, see our California prenup, postnup and cohabitation agreement guide.
