Did you know that a post-nup can save a marriage?  I am sure that you have heard of pre-nups where about to be married couples enter into an agreement to safeguard certain assets and determine what will happen if there is a divorce. We will discuss this more fully in a layer edition.

There is also something called a post-nup which is a legally binding contract similar to a pre-nup which allows married couples to determine what will happen if there is a divorce in the future. Why post-nups? If there is a particular financial issue that is stressing the marriage and the partner feels the only solution is to divorce to protect themselves financially. A post nup is an option.

It could be to protect a specific asset – such as if a partner is inheriting a significant amount of money and wants to invest it in a business or real estate, or some monies were being gifted to one party of a marriage and they will be buying a business, buying stocks, or investing in real estate and want to safeguard it. It could be a partner is given, inherit, or buys a business.

It can also be a way of not only protecting assets but limiting debt.  For example, if one partner is financially irresponsible and racks up credit card debt, the parties can agree the other party will not be responsible for the other party’s debts in case of a divorce.  They can agree there will be no joint credit card debt or authorized users.

A post-nup can also be used if a couple wants to save their marriage but are fearful if it does not work as they will have to suffer significant financial loss.  For instance, couples have entered into a post-nup when a partner had an addiction and is in recovery.  Or a partner wants to take time off from a job and the other partner is concerned they might have to pay maintenance if there is a divorce in the future.  There are so many different situations where a post-nup may be helpful in preventing a divorce; but it is also very helpful in managing expectations and having a clear understanding between the parties in the future.

We at the DePalo Law Firm counsel our clients accordingly; ensuring they are protected and still can save their marriage.