Post nuptial Agreements Unveiled

A post nuptial agreement is a written contract executed after a couple gets married to settle the couple’s financial assets in the event of a separation, divorce, or death. Such a contract is a legal agreement between spouses and can include provisions regarding property, debt, jewelry, income, and spousal support.

Arkansas courts have specifically held that post nuptial agreements are valid and should be analyzed under standard contract principles. Stewart v. Combs, 368 Ark. 121 (2006).

So why should a married couple enter into a post nuptial agreement?

Such an agreement can bring peace of mind to a stay at home spouse that will be out of the workforce for several years. In the event of separation or divorce, a post nuptial agreement can set out terms of spousal support.

A post nuptial agreement is also a useful tool when one party has a sudden increase in finances, due to the inheritance of a family business, for example. Such an agreement can safeguard the other spouse’s financial position while also protecting the family business.

In the same respect, a spouse may want to protect his or her successful business. A divorce can potentially wreak havoc on a business and such an agreement can minimize that effect.

A post nuptial agreement could also be useful for persons in a second marriage. It could protect children from a previous marriage or elderly or disabled family members. Furthermore, in the event of the death of one spouse, a post nuptial agreement can help avoid the task of splitting the estate with adult children from a previous marriage or relationship, and allow the remaining spouse to move forward with his or her life.

Lastly, a post nuptial agreement can end arguments about the division of financial assets and bring a sense of financial security to the parties so that they may focus on the marriage itself. In fact, couples who disagree over money at least once per week are 30% more likely to get divorced than couples who do not disagree.

—Jennifer Carson

jcarson@tripconylawfirm.com