We are all familiar with the concept of a "Prenup". That is the agreement that parties enter into before marriage, making a full and complete disclosure of all financial information and making provisions for future alimony and equitable distribution of assets in the event that a divorce occurs. Many people feel that it is not romantic to ask a future spouse to sign an agreement before marriage about how to divide assets upon a future divorce, but it can clarify how people feel about money and how to divide their assets if the marriage fails. Many people getting into a second marriage feel that it is important to protect their children and allow them to keep their assets acquired before the new marriage.
A Postnup is entered into after the parties marry. Every marriage is different and there is no one answer for all situations. One good time to negotiate and create a Postnup is when a child is to be born. It should set out how long both parents may be out of the workforce. If the parties agree that one parent (often the mom) will leave her job for an extended period of time, what happens in a divorce? Suppose the parties agree that one person will stay home for a year or longer. The Postnup should consider a remedy for the person who leaves the work force based upon a joint decision. If a parent stays home for an extended period of time, for example 5 or 6 years until a child begins to attend school, that person may lose their marketability due to fast moving technology, and be unable to find new employment. The Postnup may touch on those issues and provide that if there is a divorce, the stay at home parent should be able to be retrained and a reasonable period of time for support to allow that person to become marketable and find employment.
Call Steve Hirsch, Esq., 100 Jefferson Blvd., Warwick, RI at 352-100 for more information.