Postnuptial Agreements: Protecting Assets After Marriage

When most people think about marital agreements, prenuptial agreements typically come to mind. However, many married couples don't realize that they can create similar financial protections after they've already said "I do." Postnuptial agreements, contracts created during marriage rather than before, have become an increasingly popular tool for New York couples looking to clarify their financial rights and protect their assets. In this post, a Syracuse postnup attorney explains what you need to know.

What Is a Postnuptial Agreement?

A postnuptial agreement (sometimes called a "postnup") is a legally binding contract between spouses that outlines how assets, debts, and other financial matters will be handled during the marriage or in the event of divorce. While similar in function to a prenuptial agreement, a postnup is executed after the wedding has already taken place. In New York, postnuptial agreements are governed by the same legal principles as prenuptial agreements and must meet specific requirements to be enforceable.

Why Consider a Postnuptial Agreement?

Couples pursue postnuptial agreements for various reasons, and the decision to create one doesn't necessarily signal marital trouble. Common motivations include:

Changes in financial circumstances. One spouse may have received a substantial inheritance, started a successful business, or experienced a significant increase in income. A postnup can help protect these new assets while maintaining fairness in the marriage.

Addressing marital challenges. Some couples use postnuptial agreements as part of marriage counseling or reconciliation efforts. The process of negotiating financial terms can provide clarity and rebuild trust after difficulties in the relationship.

Protecting family businesses. If one spouse owns or inherits a family business, a postnup can ensure the business remains within the family rather than becoming subject to division in a divorce.

Clarifying expectations. Couples who didn't create a prenuptial agreement may later decide they want formal documentation of their financial arrangement, particularly regarding separate versus marital property.

Estate planning purposes. Postnups can work in conjunction with wills and trusts to ensure assets pass to intended beneficiaries, such as children from previous relationships.

What Can a Postnuptial Agreement Cover?

New York law allows considerable flexibility in what couples can include in a postnuptial agreement, though there are limitations. Generally, these agreements can address:

• Division of property and assets acquired before and during the marriage

• How marital debts will be allocated

• Rights to retirement accounts and pensions

• Spousal support (maintenance) in the event of divorce

• Estate rights and inheritance matters

• Financial responsibilities during the marriage

However, postnuptial agreements cannot determine child custody or child support arrangements. New York courts retain jurisdiction over these matters and will always base decisions on the child's best interests at the time of divorce, regardless of what parents previously agreed to in a postnup.

Requirements for a Valid Postnuptial Agreement in New York

For a postnuptial agreement to be enforceable in New York, it must meet several critical requirements:

Full financial disclosure. Both spouses must provide complete and honest disclosure of their assets, debts, income, and financial obligations. Hiding assets or providing misleading information can invalidate the entire agreement.

Voluntary execution. Both parties must enter into the agreement freely, without coercion, duress, or undue pressure. Courts scrutinize postnups more carefully than prenups in this regard, since spouses already have a relationship of trust and confidence that could be exploited.

Fair and reasonable terms. While the agreement doesn't need to be perfectly equal, it cannot be unconscionably unfair to one spouse. New York courts will examine whether the terms were fair at the time of execution and whether they remain fair at the time of enforcement.

Proper legal formalities. The agreement must be in writing and signed by both spouses. While not legally required, having the agreement notarized and having each spouse represented by independent legal counsel significantly strengthens its enforceability.

Can a Postnuptial Agreement Be Modified or Revoked?

Yes, postnuptial agreements can be modified or completely revoked if both spouses agree. Any changes should be made in writing and executed with the same formalities as the original agreement. However, once a divorce proceeding begins, it becomes much more difficult to change the terms.

Contact a Syracuse Postnup Attorney Today

Whether you're considering a postnuptial agreement to protect a family business, clarify financial expectations, or address concerns that have arisen during your marriage, it's essential to approach the process thoughtfully and with experienced legal guidance. A well-drafted postnuptial agreement can provide peace of mind and financial security for both spouses. Contact us today for a confidential consultation with a Syracuse prenup attorney to discuss your unique situation.

For more information on postnuptial agreements, please visit our Prenuptial Agreements in New York State and Frequently Asked Questions pages

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Laws and guidelines can change, so always verify with current statutes or a professional.