A postnuptial agreement (sometimes referred to as a “Property Status Agreement”) is a contract entered into by a couple during marriage. This document clarifies and defines the interests of the spouses regarding property brought into the marriage and property acquired thereafter. Done correctly, a postnuptial agreement can prevent misunderstandings and resultant disputes. Generally, in order for a postnuptial agreement to be valid, the agreement must provide a fair and reasonable provision for the party not seeking the enforcement. There must be full disclosure of assets and debts of the parties. The parties must enter into the agreement voluntarily on independent advice of an attorney and with full knowledge of their respective rights.
Beware that a postnuptial agreement may cause frustration because of the broad discretion which the courts have in the disposition of property during divorce. The nature of the property, whether separate or community, does not always control how the court will distribute it upon dissolution of the marriage. The court has broad equitable powers. A postnuptial agreement will be persuasive as to the proper disposition of property in the event of dissolution. However, it may not be binding on the court depending on the particular situation.
Please contact the knowledgeable attorneys at Elise Buie Family Law Group to determine if a postnuptial agreement is right for you.
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