Just as with other types of marital agreements like prenuptial agreements and nonmarital agreements, postnuptial agreements can be a very useful legal tool for married couples. These agreements allow spouses to address financial rights, obligations, and legal responsibilities in the event of a divorce or death.
Contrary to popular opinion, creating and signing a postnuptial agreement can often strengthen a marriage. It allows both parties to feel more secure in their financial future and requires open cooperation and communication. While no party enters a marriage hoping for it to end, the reality is that nearly 50% of New Jersey marriages end in divorce. Having a signed postnuptial agreement can alleviate much of the stress, contention, and expense associated with the division of marital assets and debt process.
At The Law Office of Townsend, Tomaio, Newmark & Clancy, our attorneys have extensive experience helping clients across the greater Morris County area to successfully draft and sign legally enforceable and fair postnuptial agreements. Contact our firm today to discuss your situation in a free and confidential consultation.
When Should I Create a Postnuptial Agreement?
Postnuptial agreements are legal agreements signed between an already married couple. Similar to a prenuptial agreement, a postnuptial agreement helps parties protect and define individual rights pertaining to assets or income. This includes defining what will be considered marital or separate property in the event of divorce or death.
Some of the most common reasons married couples enter into a postnuptial agreement include:
- They didn’t define their financial relationship in a prenuptial agreement and now wish to.
- One party’s financial circumstances have changed significantly (e.g., receipt of a large inheritance, promotion, new employment, or acquisition of stock options).
- The pending sale of a business requires a new financial framework.
- Financial insecurity or uncertainty is damaging the marriage.
- The couple wishes to define the equitable distribution of assets rather than have it defined for them by a court.
- One or both parties wish to provide for children from a previous marriage.
While these are the most common scenarios, a postnuptial agreement can be pursued any time a couple wishes to protect specific assets or define individual financial rights and obligations.
Is My Morris County Postnuptial Agreement Valid?
While prenuptial and postnuptial agreements share similar requirements, postnuptial agreements are generally viewed by family courts with a higher degree of skepticism. Family courts often consider couples entering into a prenuptial agreement as “business partners entering a contract.” However, after a marriage, the parties are in a “fiduciary” relationship. Courts watch closely to ensure one party did not feel pressured to sign.
For a postnuptial agreement to be legally valid and enforceable, there must be no question of coercion, manipulation, or duress. If one spouse says to the other, “if you don’t sign a postnuptial agreement, I will file for divorce,” that immediately invalidates the agreement. Five critical requirements must be met:
- Legal Representation: Each party retains separate legal counsel or explicitly waives their right to counsel in writing.
- Full Disclosure: All financial assets must be fully and accurately disclosed. If a private business or any related component is inaccurately valued, the entirety of the postnuptial agreement will likely be considered invalid.
- Fair and Reasonable: The terms must be fair to both parties. If a court determines that one party is overly benefited or significantly disadvantaged, they may dismiss the agreement.
- Willful Participation: There must be no evidence of duress, manipulation, or deceit.
- Time for Consideration: Both parties must be given a reasonable amount of time to reach an informed and thoughtful decision.
One of the most critical requirements is full and accurate disclosure. Any inaccurate evaluation of assets—even if by mistake—can invalidate the entire agreement. This is why having an experienced attorney familiar with complex asset evaluation is so important. At Townsend, Tomaio, Newmark & Clancy, we are prepared to accurately help you divide complex assets like homes, investments, retirement plans like 401ks, private and family-owned businesses, and stock options.
Contact Our Chester Postnuptial Agreement Attorneys Today
The attorneys of Townsend, Tomaio, Newmark & Clancy have extensive experience helping clients negotiate, draft, contest, and enforce postnuptial agreements of all kinds across Morris County. By practicing exclusively family law, our firm focuses on providing the knowledgeable, attentive, and personal service that you deserve.
Our firm features many attorneys repeatedly nominated to the Super Lawyers list, a testament to our professional achievements. To speak with one of our experienced family law attorneys in a free and confidential consultation, please contact us online, or call our Morris County, NJ office at (973) 840-8970.
