Pros and Cons of a Postnuptial Agreement

A postnuptial agreement may not be the first thing couples think about after tying the knot, but it can play a powerful role in protecting both partners’ financial futures. Marriage brings countless changes, new goals, shifting careers, growing families, and a postnup offers a structured way to adapt to those evolving realities. By clearly defining how assets, debts and responsibilities will be handled, it can bring peace of mind and help couples avoid conflict down the road. Far from being unromantic, a well-crafted postnuptial agreement can actually strengthen a partnership by fostering open communication and shared expectations.

You can speak to a financial advisor if you’re not sure how to financially prepare for marriage, whether you’re currently married or not.

What Is a Postnuptial Agreement?

A postnuptial agreement is a written contract that couples create after they’re already married to clarify how their assets, debts and financial responsibilities will be handled if they separate, divorce or one spouse passes away. While similar to a prenuptial agreement, a postnup is drafted after the wedding, often in response to life changes such as new income, business interests or inherited assets. Its purpose is to bring structure and transparency to a couple’s financial life so both spouses understand what would happen in the event of a major transition.

Postnuptial agreements are legally enforceable as long as they meet state requirements, which generally include full financial disclosure and fairness to both spouses. Courts typically look for evidence that each partner entered into the agreement voluntarily and had the chance to seek independent legal advice. When properly crafted, a postnup can reduce financial uncertainty and prevent future disputes by documenting decisions while both spouses are on good terms.

Many couples use a postnup to update outdated financial plans or to address new circumstances that didn’t exist when they married. This might include one spouse starting a business, receiving a significant inheritance or leaving the workforce to raise children. By putting these changes in writing, couples can protect their individual interests while reinforcing shared financial goals.

Postnuptial agreements aren’t just about preparing for worst-case scenarios, they can also support stronger communication and trust. By discussing money openly and deciding together how various financial matters will be handled, couples may strengthen their partnership.

How It Differs From a Prenuptial Agreement

A prenuptial agreement and a postnuptial agreement are almost the same documents. However, there are distinct differences between a prenup and a postnup agreement. A prenuptial agreement is created and finalized before a couple gets married. In some cases, the couples didn’t think about getting one or simply ran out of time to finalize it before their big day. While a postnuptial agreement happens days, months or even years later.

Both documents describe how a couple’s financials will be split in the event of a divorce. It can describe how assets are distributed if there will be alimony and who will assume the couple’s debts. The agreement can even spell out how an inheritance will be divided and make provisions for potential child support payments. However, most courts will want to review the child support provisions to protect the rights of the child.

Current vs. Future Finances

While prenuptial agreements address the current financial condition of both parties, their general focus is on the future growth of the couple’s finances. By comparison, a postnuptial agreement typically occurs after the couple has been married for a while. In some cases, it may be used as a roadmap for what happens if a struggling couple cannot salvage their marriage. Therefore, it generally is more focused on the current income and assets of the couple and what happens if they get divorced.

Court Involvement

In most cases, a prenuptial agreement is accepted as valid upon entering a marriage. The court assumes that both spouses had adequate legal representation and that they entered into the agreement willingly. And, if one spouse doesn’t like the terms of the agreement, the wedding can be canceled or postponed.

However, a postnuptial agreement is often scrutinized more heavily by the courts. Because the couple is already married, one spouse may be in a weaker position to negotiate the contract and could be taken advantage of.

Pros and Cons of a Postnuptial Agreement

There are many pros and cons to getting a postnuptial agreement and it shouldn’t be something that you take lightly. These can create a lot of legal and emotional scrutiny and you should only use them to protect both parties financially in the event that the marriage does not work out. Here are the biggest pros and cons of creating a postnuptial agreement.

Pros

Provides more time to assess financials: After a couple is married, they can have a deeper conversation about finances and see how each person acts with money.
Couples are more mature: Couples who are married young may not be ready to have adequate money conversations necessary for a prenuptial agreement. As they age, spouses often feel more confident in their opinions about money.
Factors in changes of income and assets: Prenuptial agreements try to predict the future. Postnuptial agreements focus on how income and assets have grown throughout the marriage, including starting or growing a business, inheritances and investing success.
Protecting beneficiaries: Couples who have children from previous relationships can protect their children’s interests in specific assets, such as family heirlooms, that have been bought or inherited throughout the marriage.

Cons

Assumption of divorce: Some spouses may feel that signing a prenup or postnuptial agreement means that a divorce is more likely. It helps to have honest conversations with each other or to involve a therapist to minimize hurt feelings.
Lack of agreement: If both spouses do not agree to certain provisions of the postnuptial agreement, it can stall the process or lead to resentment. In some cases, these can lead to a divorce when it wouldn’t have happened otherwise.
Unequal bargaining position: When one spouse is the breadwinner or has more assets, negotiations may not be a level playing field. This can lead to coercion or the erosion of rights for the other spouse.
Enforceability: Because a postnuptial agreement happens after marriage, it receives a higher level of scrutiny in divorce court. The judge may change or eliminate certain provisions if they feel that the agreement isn’t fair.

When You Might Want a Postnuptial Agreement

Couples often consider a postnuptial agreement when their financial circumstances change in ways they didn’t anticipate at the start of their marriage. A significant shift, such as one spouse changing careers, stepping away from the workforce or taking on new financial responsibilities, can create uncertainty about how assets and income should be shared. A postnup can help clarify expectations and protect both partners as they adjust to their new financial reality.

Large or unexpected financial windfalls are another common reason to pursue a postnuptial agreement. Inheritances, business ownership, major bonuses or newly acquired investments can raise questions about what belongs to whom and how those assets should be divided if the marriage ends. Documenting these details ensures that both spouses understand the plan for managing and protecting these resources moving forward.

Some couples explore a postnup after experiencing marital strain, especially if financial conflict contributed to the tension. By outlining how assets, debts and future earnings would be handled, a postnuptial agreement can create a sense of stability and reduce money-related arguments. In these cases, the agreement often serves as a tool to rebuild trust while giving each spouse confidence in the path ahead.

A postnup can also be helpful when one spouse brings children from a previous relationship into the marriage. These agreements can specify how assets will be protected and passed down, ensuring that children receive the inheritance their parent intends.

Bottom Line

A postnuptial agreement is a contract between married spouses. Similar to a prenuptial agreement, it details how a couple’s income and assets will be distributed if they get divorced. Postnuptial agreements are often used when financial circumstances change significantly during the marriage or to prepare financially if you didn’t take the chance to do so before marriage. In either situation, these contracts are scrutinized more heavily in divorce court to ensure that one spouse was not taken advantage of.

Tips for Protecting Your Assets

Creating a postnuptial agreement can be a challenge for couples. Involving a financial advisor can reduce this stress by having an impartial third party who is looking out for the interests of both spouses. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
When creating a prenuptial or postnuptial agreement to protect your assets, it helps to understand how your current assets may grow over time. Our investment calculator forecasts the growth of your portfolio using your current balance, ongoing contributions and expected rate of return.