How Postnuptial Agreements Play Out in Property Division
Posted on Dec 13, 2013 12:00am PST
High-profile divorce cases such as the recent Murdoch-Deng split in often
elevate certain legal concepts in the public's awareness, including
that of Georgia residents. In that case, the division of marital property
and assets was of particular interest because that divorce not only brought
up the fairly well known prenuptial agreement but also raised the profile
of the much lesser known postnuptial agreement.
In fact, a survey by the American Academy of Matrimonial Lawyers notes
that 51 percent of divorce attorneys have seen the rise of postnuptial
agreements over the past three years. Of these, 36 percent of divorce
attorneys saw wives now initiating more postnups. One expert notes that
this type of agreement is essential for mothers who choose to stay at
home rather than continue their working careers.
Without postnups, stay-at-home moms are greatly disadvantaged in the event
of divorce because they have often sacrificed their potential career earnings
to raise children. Taking care of a home and children can certainly be
fulfilling, but it does nothing for a woman and mother's financial
stability after divorce.
The rising trend of postnuptial agreements is not surprising because many
spouses at some point consider protecting themselves from the economic
impact of divorce. Much like a prenuptial agreement, a postnup can safeguard
a person's assets and keep businesses, retirement benefits and investments
separate from property division in divorce. Although, discussing marital
agreements is often uncomfortable for couples, a postnuptial agreement
can clarify the financial rights and interests of both spouses in a marriage
and divorce.
Drafting a postnuptial agreement may be a wise move for spouses particularly
in equitable property states like Georgia. Equitable distribution can
give rise to complicated issues, so a postnuptial agreement could make
the division process not only smoother and less complex but also less
uncertain.