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Difference Between Prenup and Postnup

Although postnuptial agreements are less common than prenuptial agreements, there has been a recent surge in the production of these agreements. In essence, these two legal contracts are established for the same general purpose. However, a postnuptial is made after a couple has been married as opposed to a prenup which is done prior to the wedding.

The overall purpose of a postnup is to protect any assets from each spouse’s claims in the situation when the marriage ends whether it occurs from a death or dissolution of the marriage. Where there are community property states, the assets of one can automatically entitle the other to a portion of their assets after they get married. Some other reasons for a postnup are to protect a business, or it can be used as a resource for managing threats to the business in regards to assets.

In regards to a prenup, it is possible that one’s finances may substantially increase in the future. One party might have a significant increase in salary due to a raise or a promotion. There could be a possibility of a large inheritance awaiting one of the partners in the marriage. Nowadays, many are entering their second or third marriage, and one should consider children from past relationships.

With a premarital agreement in force, you will be reasonably reassured how your assets and debts would be handled in the event you do not stay married. Any potential form of property settlement will be resolved and addressed while you are on good terms with each other. In this agreement, you can include as many issues as you desire.

All 50 states recognize prenuptial agreements. They are simply contracts between prospective spouses entered into before the marriage that identify each spouse's separate property and define each spouse's rights in the other's property, including future earnings, during and upon termination of the marriage by divorce or death. The prenuptial agreement can waive a spouse's rights to alimony and provide for the rights of children from a prior marriage.

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Separate property is property acquired before marriage, property received after the date of separation, inheritances, and gifts. Separate property is not divided in the divorce. Debts incurred before getting married or incurred after separating are separate property debts. Spouses are required to file proof of community and separate property on a Preliminary Declaration of Disclosure.
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