While the idea of a “prenup” is well-known, postnuptial agreements are often overlooked. These agreements, signed after marriage, can be a vital part of your Phoenix, Arizona estate plan. They provide clarity and protection, particularly as your life and circumstances change.

What is a Postnuptial Agreement?

A postnuptial agreement is a legal contract between spouses outlining the division of assets, debts, and other financial matters in the event of separation or death. This agreement can clarify property ownership (including inheritances), protect business interests, address spousal support, and specify who is responsible for debts, both old and new.

Enforceability of a Postnup

In Arizona, while there isn’t a specific statutory framework for postnuptial agreements as there is for prenuptial agreements, these agreements are legally recognized by the courts. This recognition is based on established legal precedent, which has upheld the enforceability of postnuptial agreements in Arizona. Thus, despite the absence of a dedicated statute, these agreements remain valid and enforceable under Arizona law due to their historical acceptance by the courts.

Why Consider a Postnup

There are many scenarios where a postnuptial agreement might be beneficial. For example, if a couple got married when they were young and didn’t have many assets, but later they started doing well and enjoying the fruits of their success.  They are also useful when financial circumstances significantly change due to an inheritance. Furthermore, a postnup can safeguard business ownership and create peace of mind by providing clear expectations and reducing potential conflict.

Example: Imagine you started a business, either before or after your marriage, and it has grown significantly in value. A postnup can ensure the business remains your separate property, protecting it from potential division in case of a divorce.

Important Considerations

It’s crucial that both spouses fully disclose their assets and debts to ensure the postnuptial agreement is valid. Each spouse should also have independent legal representation for guidance and protection of their best interests. Along with disclosure and legal counsel, it’s vital that the postnuptial agreement itself is fair to both parties. This helps ensure it will be upheld if challenged.

A Brief Note on Prenups

While prenups are signed before marriage, postnups offer the advantage of addressing changes in life circumstances that occur after you’ve said “I do.”

Getting Help

If you’re considering a postnuptial agreement, a Phoenix, Arizona estate planning attorney can guide you through the process. Let’s discuss whether this legal tool is right for protecting your assets and your legacy. Schedule an appointment by contacting our law firm at (602) 274-4400 today.