Prenuptial agreements, or “prenups,” are not the only contracts that allow couples to clarify and protect their financial interests. Postnuptial agreements do the same thing. As the names imply, the only main difference between the two is whether a couple signs them before or after the marriage.
Illinois courts recognize and enforce postnuptial agreements
Yes. While Illinois doesn’t have a specific statute governing postnuptial agreements – unlike prenups – the courts still recognize their validity. For an agreement to be enforceable, it must be:
- In writing
- Signed by both parties
- Entered voluntarily
- Based on full financial disclosure
It’s important to note that courts may review these agreements for fairness, especially if circumstances have changed significantly since the parties made the agreement.
Financial transparency and protection
Couples can use postnuptial agreements to:
- Define marital and non-marital property clearly
- Protect individual assets or businesses
- Address debt allocation
- Establish financial responsibilities within the marriage
The state follows equitable distribution laws for property division. This means that in a divorce, the court will divide marital assets based on various factors, such as the length of the marriage and each spouse’s contribution and economic circumstances. A postnuptial agreement can give a couple more control over their assets rather than leaving it to the court’s decision.
Strengthening the marital relationship
Contrary to common belief, creating a postnuptial agreement has the potential to make a marriage stronger. The process encourages couples to talk openly about finances, which is a topic many find challenging. Couples can set clear expectations and financial goals. Making these agreements can also reduce potential conflicts and build trust between partners.
Adapting to significant life changes
Life often brings unexpected changes. Postnuptial agreements help couples adjust their financial plans when these changes occur. This includes:
- Career changes: If one spouse starts a higher-paying job, the couple can update how they’ll share income or expenses.
- New businesses: When a spouse launches a business, they can outline how they’ll divide business assets or debts if they divorce.
- Inheritance: If one partner receives a large inheritance, they can specify whether it will remain non-marital or marital property.
By addressing these changes directly, couples can maintain fairness and mutual understanding in their marriage.
Create an agreement that works for you
If you’re considering a postnuptial agreement, seek the advice of an attorney. They can help ensure your agreement is fair, comprehensive and legally binding.