Postnuptial Agreements
A postnuptial agreement is a legally binding document that protects assets and finances acquired while married. It differs from the more commonly known prenuptial agreement in that it’s drawn up after marriage, as opposed to before.
Postnuptial agreements in NC aren’t intended to have negative connotations; rather, they provide financial security and clarify the rights of both parties in the marriage. You cannot enter into a postnuptial agreement without the consent of both parties.
Why Should You Get a Postnuptial Agreement?
The reason for getting a postnup agreement differs from person to person. If a spouse invests money and hits a windfall, they may wish to have a postnup to ensure that their other half is financially secure for the future. On the other hand, if a couple consistently encounters financial issues, they may wish to organize a postnup to ease tensions.
In North Carolina, the law dictates how marital property is divided between individuals on a fair allocation basis. A postnup gives you more control of the distribution of property and assets.
These are the most common reasons why couples choose this kind of contract:
- One party inherits or wins a large sum of money and wants to stipulate how it’s split.
- There are ongoing financial issues within the marriage.
- The marriage is unstable, and there’s a possibility of a separation agreement on the horizon.
- Debt protection and business operations of a burgeoning new business.
- They’d like to revise an existing prenup.
- There’s been an instance of infidelity, and one spouse wants to ensure they’re protected if it happens again.
- There wasn’t enough time to draw up a prenup before the marriage.
Requirements of a Postnup to Make It Legally Binding
A postnup is readily accepted by the North Carolina courts.
While there is a comprehensive list of items to include in postnuptial agreements, these are a few of the most important requirements:
- All details must be laid out in writing, signed and agreed to by both parties.
- Agreements must adhere to public policy.
- Both spouses should be upfront and transparent about their finances and fully disclose debts.
- The document must be notarized by a state officer or the North Carolina General Court of Justice.
- It cannot be drafted in anticipation of a pending divorce or separation.
An experienced family law attorney can assist with the details needed for a postnup.
How Is a Postnup Different From a Separation Agreement?
Much like prenup agreements, separation agreements are also legally binding documents but are drawn up when a couple is already living apart. When filing for divorce, a couple has to be legally separated for a minimum of one year. A postnup is for couples who are still very much together but just wish to protect their assets. Additionally, a separation agreement can stipulate child custody rules, visitation rights and alimony payments. A postnup can’t address issues around child custody, as this requires adherence to state laws.
Postnuptial agreements in NC don’t have to have negative connotations — they can provide clarity about assets, debts and finances and protect both parties.
In North Carolina, you don’t need an attorney to draft a postnuptial agreement. For the agreement to be enforceable, all you need is both parties’ consent and signed documentation. However, because these documents are complex, it’s advisable to enlist the help of Freedom Law to mitigate a potential conflict of interest. Contact us today to get started.