By Renée Sylvestre-Williams
It takes a lot of love and trust to sign a prenup. Besides, it’s never too late to write one, even after marriage.
“I thought prenups were just for the rich.”
I told my accountant ten years ago when he kindly suggested that I seriously think about drafting a prenuptial or postnuptial contract, also known as a “marriage contract.”
His suggestion immediately made me think of the bizarre requirements found in celebrity prenups, such as infidelity or weight clauses. But, of course, we are far from the quest for marital happiness.
I made my accountant laugh. More people should have a prenup, he told me. In the event of a divorce, this avoids many problems and can even save you a lot of money! But is it too late to write one if you are already married?
“A marriage contract can be written before or during the marriage, depending on the situation,” says Laura Paris, associate attorney at Shulman Law.
Ms. Paris explains that people are more likely to write a prenuptial agreement since it is associated with the date of the wedding. However, drafting a marriage contract is not always on the priority list due to the cost and time involved in preparing for a wedding. However, it is still better to have a postnuptial contract than no contract at all.
Whether you are already married or hope to be one day, drafting a personalized marriage contract can provide you with significant advantages; here are a few :
You will be prepared, “just in case.” Although you hope your marriage will last forever, the statistics don’t lie, and a divorce could happen. However, in the event of a separation, you will have peace of mind knowing that you have drawn up a prenuptial or postnuptial contract.
You will have settled some delicate issues before the situation deteriorates. A marriage contract can be simple or complex, depending on the couple’s requirements. It may contain clauses on, for example, separation of property and spousal support. If you separate, you will already have a written contract. “Marriage contracts leave little room for disputes because everything is already arranged and written in black and white,” says Ms. Paris.
You will have taken into account changes in your financial situation. If one spouse’s net worth has changed significantly since the start of the marriage, or if it is clear that it will change in the future, a 50/50 property split may not be the way to go—an appropriate solution in the event of divorce or separation. With a postnuptial agreement, you can decide how your property will be divided. For example, it could stipulate that assets acquired after marriage (such as an inheritance) will be divided to benefit the person who received them.
You will have protected your children. If you have children from a first marriage, you may want some of your assets to go to them. For example, you inherited an amount of money from your first deceased husband, and you would like it to be paid to your children and not to your second spouse. With a postnuptial agreement, you can ensure that these assets will not be considered joint property in the event of a divorce or separation.
