Many couples who signed a prenuptial agreement don’t think about it again unless their marriage hits a rough patch. Some even assume that it expires.
The fact is that a prenup doesn’t expire unless there’s a “sunset” provision included. Without such a provision, if a couple divorces, that prenup can still determine some of the terms of that divorce – likely ones related to property division and possibly spousal support. The terms that a couple agreed to before they married, however, may not reflect the ways things have played out in their lives and their marriage.
That’s why it’s smart to review your prenup occasionally – and certainly if you’re considering divorce or believe your spouse is. Technically, a prenup can’t be modified once a couple is married. However, it can be replaced with a postnuptial agreement.
Circumstances that can warrant a change in terms
It’s wise for spouses to put a postnup in place, whether they had a prenup or not, if situations like any of the following occur:
- One spouse has far more income than the other.
- One spouse has become a stay-at-home parent or caregiver.
- One spouse has accrued a lot of debt (for example, through gambling, overspending or bad investments).
- One spouse has developed a chronic illness or disability that limits their ability to work.
- One spouse has received a large inheritance (or expects to)
- One or both spouses have started their own business.
- One or both spouses have received or anticipate a large inheritance.
These are just some of the things that could affect the kind of settlement one or both spouses would need if they divorced.
Having important matters regarding property division and alimony detailed in a postnup can help provide both spouses with peace of mind. It can also help ensure that any potential divorce will be more amicable, efficient and less costly than it otherwise would be.
When drawing up a postnup, it’s crucial that each spouse has their own individual legal representation. This will help protect their rights and interests and ensure that the document is valid and will hold up if it’s ever needed.