Postnuptial Agreement

Often referred to as a “postnup” or “postnuptial contract,” a postnuptial agreement is a legally binding document created by a married couple after they have wedded to outline the division of assets, financial responsibilities, and other marital issues in the event of divorce or death.

Similar to a prenuptial agreement (prenup), which is created before marriage, a postnuptial agreement serves to provide clarity and legal protection in case of the dissolution of the marriage. We will explore the legal definition of a postnuptial agreement, its purposes, key components, enforceability, and considerations.

Postnuptial Agreement

Legal Definition of a Postnuptial Agreement

A postnuptial agreement is a written contract entered into by a married couple after their wedding ceremony, typically with the assistance of legal counsel. This agreement outlines the rights, obligations, and distribution of assets in the event of divorce, separation, or the death of one of the spouses. It is a legally binding document that serves as a marital contract governing various financial and property matters.

Purposes of a Postnuptial Agreement

Postnuptial agreements serve several purposes.

A. Asset Protection: They provide a framework for protecting the financial interests and assets of both spouses, especially in high-net-worth marriages or when one spouse has significantly more wealth than the other.

B. Clarity: Postnuptial agreements clarify the financial expectations and division of property, reducing potential disputes and conflicts in the event of divorce.

C. Estate Planning: These agreements can be part of estate planning, ensuring that assets are distributed according to the couple’s wishes upon one spouse’s death.

D. Protecting Family Interests: Postnuptial agreements can help protect the interests of children from previous marriages by specifying how assets will be allocated among spouses and children.

E. Preservation of Business Interests: Business owners may use postnuptial agreements to safeguard their business interests and prevent their businesses from becoming marital property subject to division in a divorce.

F. Reconciliation and Relationship Enhancement: In some cases, postnuptial agreements are used to address marital issues and promote reconciliation. They can help spouses address financial concerns and strengthen their marriage.

Key Components of a Postnuptial Agreement

While the specific terms and conditions of postnuptial agreements can vary widely based on the couple’s preferences and circumstances, there are common elements typically included:

A. Asset Division: The agreement outlines how marital assets, such as real estate, investments, savings accounts, and personal property, will be divided in the event of divorce or separation.

B. Debts and Liabilities: It specifies how marital debts and financial liabilities, including mortgages, loans, and credit card debts, will be apportioned.

C. Spousal Support (Alimony): The postnup may address the issue of spousal support, including the amount, duration, and circumstances under which one spouse may receive support from the other.

D. Inheritance and Estate Planning: It can detail how inheritances, gifts, and bequests received during the marriage will be treated and whether they will remain separate property or become marital property.

E. Business Interests: If one or both spouses own businesses, the agreement may address how business interests, ownership, and profits will be handled in the event of divorce.

F. Child Custody and Support: While child custody and child support issues are typically determined by the court based on the best interests of the child, the agreement may outline the couple’s intentions regarding child custody and support.

G. Financial Responsibilities: It can clarify each spouse’s financial responsibilities during the marriage, including how expenses will be shared and managed.

H. Legal Fees: The agreement may specify which spouse is responsible for legal fees associated with drafting, reviewing, or challenging the agreement.

I. Governing Law and Jurisdiction: The postnup often includes provisions specifying the applicable state laws and the jurisdiction in which disputes related to the agreement will be resolved.

Enforceability of Postnuptial Agreements

The enforceability of a postnuptial agreement depends on several factors:

A. Voluntary Agreement: Both parties must enter into the agreement voluntarily, without coercion, duress, or fraud. A postnuptial agreement signed under duress or pressure may be deemed unenforceable.

B. Full Disclosure: Complete and honest financial disclosure is essential. Both spouses must provide a full and accurate accounting of their assets, debts, income, and financial interests.

C. Fair and Reasonable: The terms of the agreement should be fair and reasonable at the time of execution. An egregiously one-sided or unconscionable agreement may not be upheld by the court.

D. Independent Legal Counsel: While not always required, it is advisable for both spouses to have their own legal representation when negotiating and executing a postnuptial agreement. This helps ensure that each party understands the terms and implications of the agreement.

E. Proper Execution: The agreement must be executed in accordance with state laws, which may require signatures before witnesses and notarization.

F. No Material Changes: A significant change in circumstances, such as the birth of a child, a substantial increase in wealth, or a significant change in marital roles, may necessitate amending the agreement to reflect the new circumstances.

5. Considerations for Creating a Postnuptial Agreement

Creating a postnuptial agreement involves careful consideration and negotiation between spouses. Some important considerations include:

A. Transparency: Both parties should openly discuss their financial situations, expectations, and concerns before drafting the agreement.

B. Legal Counsel: Each spouse should have independent legal counsel to protect their individual interests and ensure they fully understand the implications of the agreement.

C. Fairness: The terms of the agreement should be fair to both spouses, reflecting their contributions and sacrifices within the marriage.

D. Review Period: Spouses should consider including a review period in the agreement, allowing them to revisit and potentially modify the terms as circumstances change.

E. Communication: Effective communication is crucial throughout the process. Openly addressing concerns and negotiating in good faith can lead to a more satisfactory agreement.


A postnuptial agreement is a legally binding contract created by a married couple after their wedding to address financial and property matters in the event of divorce or death. It serves various purposes, including asset protection, clarity, and estate planning. Key components typically include asset division, debts, spousal support, inheritance, and business interests.

The enforceability of a postnuptial agreement depends on factors such as voluntary agreement, full disclosure, fairness, and proper execution. Consideration of transparency, legal counsel, fairness, review periods, and communication is essential when creating a postnuptial agreement. These agreements provide couples with a means to proactively address financial issues and plan for their future while protecting their individual interests.