Postnuptial agreements: Who needs one and why


When Justin Bieber and Hailey Baldwin got married without a prenup in 2018, fans voiced concerns over social media, but the young couple opted for the lesser-known postnuptial agreement as reported by TMZ.

A postnup helps couples divide assets in case of a future divorce, but unlike a prenup, it can be signed after marriage – which is helpful for couples who have grown or acquired assets they didn’t have before tying the knot. Postnups require full disclosure of finances from both parties to be enforceable, and it’s not an agreement that’s reserved for the rich and famous.


FOX Business consulted legal experts to find out who needs a postnup and why it is worth looking into.

If You Suddenly Get Rich

People tend to opt for a postnup when their financial situation has suddenly changed in a dramatic way, according to Morris Armstrong, the founder and owner of tax preparation and representation agency Morris Armstrong EA.

“That widget which you have been working on has become the greatest thing since sliced bread, or your novel has become a bestseller and people are clamoring for more of your works, could make one think about attempting to limit one’s exposure in the event of a divorce,” Armstrong suggested as feasible examples.

“It might be better to give up 60 percent of 10 million now, than 40 percent of a future 100 million,” he remarked to illustrate how a postnup is beneficial for the breadwinner.

If You Own Community Property

Couples who are real estate power duos are increasingly looking toward postnuptial agreements to protect and segregate their property from each other, according to Shann Chaudhry, an attorney at SMC Esquire. Though, he noted that this has become common in community property jurisdictions.

“For example, in a community property state such as Texas, if you inherited real property like a residence, it would be your separate property. However, if you converted it into a rental property, the income of the property would be community property,” Chaudhry explained. “The expenditure of community property funds on the rental property upkeep, repairs, insurance, and taxes would create a contribution claim by the community against the separate property estate.”

He continued, “To prevent this, inherited assets are put into asset protection trusts or entities, to insulate the asset from liability and segregate the income and cost of the asset. A key part of this process is the postnuptial agreement.”…Read more>>



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