When preparing for marriage or divorce, both spouses may decide to protect their assets through prenuptial or postnuptial agreements. By creating documents that outline the division of assets in the case of divorce, couples may be able to prevent highly contested divorces. These documents are in both parties' best interest because collaborative divorces are typically faster and less expensive than contested divorces. If you and your spouse are planning your marriage and how assets would be divided in the case of divorce, it would be in your best interest to discuss your plans with an experienced family law attorney. 

Prenuptial vs. Postnuptial Agreements

As indicated by the prefix of each word, prenuptial agreements are drafted before marriage, whereas postnuptial agreements are drafted after a marriage. There are a few reasons that couples may decide to draft these agreements. Firstly, having a prenuptial or postnuptial agreement can help protect independent finances for each spouse. It can also declare which assets belong to a corresponding spouse. In the case of separation or divorce, this can prevent court litigation over contesting belongings, finances, and other assets. Prenuptial and postnuptial agreements typically include who will retain the home, how joint finances and businesses will be divided, and how other material assets will be divided. 

Which is Better?

Deciding whether a prenuptial agreement or a postnuptial agreement is best for you and your spouse is entirely up to your unique relationship. Each marriage is different and comes with various financial assets and joint partnerships. It is in both spouses' best interests to discuss whether a prenuptial or a postnuptial agreement is the best for your relationship with a lawyer. Family law and divorce attorneys are skilled in analyzing finances and other assets and the relationship structure between partners. A lawyer may help guide you towards which agreement is best. However, here are some tips to help you begin deciding on whether a prenuptial or postnuptial agreement is suitable for you:

Premarital agreements are legal agreements between a couple prior to their marriage. Within a premarital or prenuptial agreement, many couples will lay out individual rights and responsibilities that each spouse will have during the marriage. These agreements are extremely useful in high asset marriages to help dictate property agreements and have proven to be useful if a marriage comes to an end. Engaged couples who are looking to create a prenuptial agreement before their wedding date should reach out to an experienced family attorney who is prepared to help navigate this process.

Reasons to Create a Prenup

Prenup agreements are most commonly portrayed in the media as contracts created by rich families to ensure their wealth stays in the family in case of a divorce. However, there are a plethora of reasons that couples decide to create a legal premarital agreement prior to their wedding. Typically, the reasons are unique and personal to each couple. There are often overarching themes in the reasons. Here are some of the most useful reasons to create a prenuptial agreement in the state of Illinois:

• Lay out the division of finances and bills during the marriage
• How to divide assets and property in the case of divorce or death
• How spousal support would be divided in the case of divorce 
• Creation of wills and trusts in the case of death 
• Ensure parental rights if/when children are introduced into the marriage 

How to Create a Prenup 

Considering that a prenup is a legal document, the state of Illinois has specific criteria required when creating and signing premarital agreements. The Illinois Uniform Premarital Agreement Act’s requirements for a legitimate prenuptial agreement that can be upheld in court include:

Over the past several years, the divorce rate in the United States has been decreasing. In 2019, the rate was a record low, with only 15 out of every 1,000 marriages ending in divorce. This was the lowest rate of divorce this country has seen since 1970. Not only has the divorce rate been dropping, but the median duration of marriages has also increased by almost one year in the past decade. In 2010, the median length of a marriage in the United States was 19 years. In 2019, the length was up to 19.8 years. Below is a look at some of the reasons for these statistics.

Rates of Marriages and Divorces

It is projected that the divorce rate will continue to drop, despite the ongoing COVID-19 pandemic. Last March, when the pandemic first hit this country and states shut down, early projections were that that stress caused by couples and families being locked down together would cause divorce rates to spike. And while there were couples whose marriages did not survive this forced “together” time, data collected reveals that the pandemic actually resulted in many couples becoming closer. In fact, in one major survey, more than half of the 3,000 people surveyed said that the pandemic had strengthened their relationships with their spouse, they had found their commitment to their marriage had deepened and made them appreciate their spouse more than they had before.

Most people are familiar with the concept of a prenuptial agreement, if for no other reason than the media attention given to many high-profile marriages and divorces. Postnuptial agreements are not as well-known, but they are a viable option for many married couples when the partners have assets they wish to protect. Although they are not necessary for every marriage, it may be worth considering whether a postnuptial agreement is a good choice for you and your spouse.

What Can a Postnuptial Agreement Include?

Postnuptial agreements can address many of the same matters as prenuptial agreements, with the primary difference being that prenuptial agreements are established before the partners are legally married, while postnuptial agreements are established after. Some specific items that you may want to address in a postnuptial agreement include:

If you own a business prior to getting married, it is only natural that you would think about how your marriage will impact your business assets and operations, even in the happiest and healthiest of relationships. You have likely invested significant time, money, and effort into building the business up to its current state, and want to ensure it remains in good hands throughout your marriage and in the event of a future divorce. One way to protect your business assets is to pursue a prenuptial agreement with your soon-to-be spouse.

Benefits of a Prenuptial Agreement for Illinois Business Owners

Though it may be difficult to broach the subject of a prenuptial agreement with your partner, failing to be upfront with your needs can lead to problems in your marriage later on. An open discussion about finances can clarify where each of you stands and may help you both feel more comfortable about your marriage. For business owners, a prenuptial agreement offers several benefits, including: