Every marriage is unique, and so are the financial arrangements that work best for each couple. For some, a postnuptial agreement can provide peace of mind. Drawn up after your wedding day, this legal document can help you and your spouse align your financial goals and clarify your shared vision for the future.
However, the court may not consider all agreements valid, especially if they find them unfair or created under duress. You and your spouse must fulfill certain requirements to ensure your postnuptial agreement is fair and enforceable.
You both must enter into the agreement willingly
There should not be any coercion, fraud or undue influence involved in signing the agreement. This includes:
- Forcing the other to do something through threats or violence
- Intentionally deceiving the other about important facts related to the agreement
- Taking advantage of a position of power over the other to pressure them into signing
Consider hiring separate attorneys. This ensures you both fully understand the agreement and its implications, reducing the risk of future disputes.
There must be full and fair disclosure
Transparency is key. You and your spouse must provide a complete picture of your finances, including:
- All assets, including property, investments, savings, businesses and intellectual property
- All liabilities, such as debts, loans, mortgages and credit card balances
- Current income and future financial prospects, such as potential inheritances and career changes
Why is this important? If either spouse discovers that the other hid significant assets or debts, it could be grounds to invalidate the entire agreement.
Your agreement must not be “unconscionable” when you sign it
Your agreement must be fair when you sign it. Courts may invalidate an agreement if they deem it unconscionable – that is, extremely one-sided or unfair. An unconscionable agreement heavily favors one spouse to a shocking degree. For example, it might leave one spouse with almost nothing while the other keeps most or all assets.
However, keep in mind that an agreement isn’t automatically unconscionable just because it benefits one spouse more than the other. Courts look for a gross imbalance that goes beyond mere favoritism.
Secure your financial future together
A postnuptial agreement can be a powerful tool for financial clarity and security, but only if it’s enforceable. To ensure its validity, consider working with a family law attorney.
