Many couples who put a prenuptial agreement in place before they got married experience a number of changes throughout their marriages that they didn’t anticipate. Some people think that prenups actually expire after a certain period.
That’s not the case unless they included a “sunset” provision. If the prenup is still valid, that means if they divorce, they could end up with a settlement that isn’t at all advantageous to them.
This is why, even if a couple has no intention of divorcing, it’s wise to go back and review their prenup. If changes need to be made, a brand new document called a postnuptial agreement or postnup needs to be created.
What kinds of things warrant a postnup?
A postnup can address situations like the following:
- One spouse is far outearning the other.
- One spouse has left the full-time workforce to be a stay-at-home parent or elder caregiver.
- One or both spouses has started their own business.
- One or both spouses has received or anticipates a large inheritance.
- One spouse has accumulated a considerable amount of debt on their own.
- One spouse has become seriously ill or disabled.
- One spouse has paid off the other’s student loans or other debt, has worked to put their husband or wife through graduate school or otherwise done something that would warrant “reimbursement alimony” as it’s known in New Jersey.
- One or both spouses has bought large assets during the marriage that they want to retain if they divorce.
Negotiating the terms of a postnup can be more challenging than agreeing on the terms of a prenup – particularly if there have been bumps in the road during the marriage. However, whether there’s a prenup that needs to be replaced or not, it’s still important to have a postnup that reflects each spouse’s interests and concerns.
While New Jersey follows the “equitable distribution” model of property distribution in divorce, it’s best not to rely solely on a judge to do what is fair. Having important matters regarding property division and alimony codified in a postnup can also help a divorce (if it happens) proceed more quickly and peacefully – and cost less money – than it otherwise would. As with a prenup, it’s critical for each person to have their own legal representation as they negotiate and draw up a postnup to protect their rights and interests.
