WHAT ARE POSTNUPTIAL AGREEMENTS?

A postnuptial agreement is a legal arrangement created by a couple after they get married. This written agreement can detail various boundaries as well as assign ownership of both property and assets. A postnup is often created so that, in the event of a separation or divorce, each spouse may keep the important assets they may have had prior to the marriage. This agreement typically covers financial matters, such as setting the ground rules for how finances are to be handled during the union or the anticipation of real estate property division. Another reason why a couple could seek this agreement is if one spouse potentially inherits a considerable amount of assets or property and hopes to protect this in the event of a divorce. Whatever the specific terms, these agreements are in place for pragmatic reasons. Couples often utilize these agreements to avoid miscommunication and extended litigation in case there are marital problems in the future. Postnups are important because if a separation or divorce happens, the court will be responsible for dividing all the assets and property belonging to the couple. These agreements are intended to give the spouses control over how property and assets are divided.

WHAT IS THE LEGAL BASIS FOR POSTNUPTIAL AGREEMENTS IN ARIZONA?

Under Arizona law, prenuptial agreements are valid and enforceable. Prenups are legal under state law, according to the Uniform Premarital Agreement Act in Arizona Revised Statute Section 25-202. However, unlike prenuptial agreements, the state does not have a specific statute regarding postnuptial agreements. Family courts will recognize these legally binding agreements, though, because they are valid by virtue of precedent cases. Since Arizona courts have a history of enforcing these agreements, they continue to do so to this day.

WHAT IS COVERED IN A POSTNUPTIAL AGREEMENT?

A postnuptial agreement is put in place to outline the different assets spouses own and can dictate what happens to said assets in the event of a divorce. Let’s take a look at the most common and important areas covered in a postnup.

FINANCIAL ASSETS

This agreement can cover the various financial assets of each spouse, including their income and/or retirement fund. In divorces with a prenup or postnup, a spouse who earns more money can be subject to an unfair division of assets. This can happen when the other spouse actively pursues these assets. The prenup can also examine how debt is to be divided in the event of a separation or divorce.

PROPERTY AND ASSET DIVISION

Following the end of a marriage, many people feel more comfortable creating legal documents to identify their valued assets and property. This way, if a separation or divorce occurs, they can ensure they’ll be able to keep what they had prior to their marriage. Not only can a postnuptial agreement identify ownership of assets, but it can also dictate how they will be divided after a marriage.

ALIMONY

Commonly known as spousal support, alimony is a payment made from one spouse to another following a divorce to ensure they can keep the same lifestyle they’ve been accustomed to. Many people will create parameters around alimony in their postnuptial agreement in order to prevent any unfair legal action from the other spouse after the divorce.

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WHAT IS NOT COVERED IN A POSTNUPTIAL AGREEMENT?

There are some certain things that cannot be included in a postnuptial agreement. Family matters, child custody, and employment circumstances can’t be covered in a prenup, for example. When creating this agreement, many parents with children from previous marriages want to include child custody arrangements in the agreement. Unfortunately, these arrangements cannot be outlined in a postnup as they must go through family courts. Additionally, other family law matters cannot be handled through a postnuptial agreement. This agreement cannot outline where a child or family member should live following a divorce. A postnup also cannot detail employment circumstances of a spouse in a divorce.

POSTNUPS VS PRENUPS IN ARIZONA

In the state of Arizona, two people can voluntarily join in a prenuptial agreement prior to getting married. Prenuptial agreements are also commonly referred to as premarital agreements or antenuptial agreements. These agreements set forth the spouses’ rights and responsibilities within the marriage and if the marriage ultimately ends in a divorce or one spouse’s death. All prenup contracts must be finalized before the couple enters into the marriage. If the wedding happens to be called off, then the contract is invalid and unenforceable. If the prenuptial agreement is completed correctly, it offers many benefits to the eventual spouses. This proactive plan going into marriage provides a clear course of action on the occurrence of nearly any contingency. Prenuptial agreements are put in place to offer certainty in the event of a divorce, disability, or death. The major difference between the agreement types is that prenups are finalized before a marriage, while postnups are created after the marriage. Prenups are also typically easier to enforce. Since postnups are made after the marriage takes place, they are like other legal contracts in that they are frequently subject to reconsideration by the court in case some of the circumstances have changed. Prenups are both legally binding and considered established law in Arizona, which means they can be more strictly enforced during a divorce.