Contrary to popular belief, neither postnuptial agreements nor prenuptial agreements are intended to be signed in contemplation of divorce. Instead, a divorce settlement agreement should be used in this situation.
Postnuptial agreements are increasingly being used by newlyweds as a practical means of disclosing their personal finances and agreeing to a fair division of assets in the event of divorce or the death of a spouse. This often helps decrease the incentive for divorce by ensuring each spouse’s assets and debts stay separate.
Spouses also commonly use postnuptial agreements when one or both of them has children from a previous relationship who they want to protect in the event of a future divorce. Postnuptial agreements may also be used when one spouse has developed a gambling problem or has amassed a sizable credit card debt balance, or when one spouse inherits assets from a deceased loved one’s estate. In these cases, a postnuptial agreement can help protect each party's interests.
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