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Postnuptial Agreement
I need a postnuptial agreement outlining asset division, including a 60/40 split of joint assets, and spousal support terms for a 5-year marriage, with provisions for future children.
What is a Postnuptial Agreement?
A Postnuptial Agreement is a legal contract created by married couples to outline how they'll handle their finances and property if they separate or divorce. Unlike prenups, which couples sign before marriage, postnups happen after the wedding day when spouses want to clarify their rights and responsibilities.
These agreements typically cover asset division, debt responsibilities, and spousal support. Many couples create postnups when their financial situation changes significantly - like starting a business, receiving an inheritance, or buying property. While state laws vary on enforcement, courts generally honor postnuptial agreements if they're fair, transparent, and both parties had independent legal counsel.
When should you use a Postnuptial Agreement?
Consider a Postnuptial Agreement when significant financial changes occur during marriage. Common triggers include one spouse starting a business, receiving a large inheritance, or returning to work after raising children. It's also valuable when couples want to clarify financial responsibilities or protect assets for children from previous marriages.
Many couples create postnups after recovering from marital difficulties and wanting to rebuild trust through clear financial boundaries. The agreement becomes especially important when spouses mix business and personal assets, take on major debt, or experience substantial career changes. Getting it done early helps avoid confusion and conflict later, particularly in community property states.
What are the different types of Postnuptial Agreement?
- Basic Property Agreement: Covers division of existing assets, debts, and future inheritances - ideal for straightforward financial situations
- Business Protection Postnup: Specifically shields business assets and defines how company growth will be handled during marriage
- Estate Planning Postnup: Focuses on inheritance rights and protecting assets for children from previous marriages
- Debt Management Agreement: Details responsibility for existing and future debts, including credit cards and mortgages
- Lifestyle Postnup: Includes both financial terms and personal conduct expectations, like career decisions or household responsibilities
Who should typically use a Postnuptial Agreement?
- Married Couples: The primary parties who create and are bound by the postnuptial agreement, typically when facing financial changes or seeking clarity
- Family Law Attorneys: Draft and review the agreements, ensuring legal compliance and fair representation for each spouse
- Financial Advisors: Help identify assets, assess financial implications, and provide guidance on property division
- Business Valuators: Evaluate company assets when business interests are involved in the agreement
- Estate Planning Attorneys: Coordinate postnuptial terms with existing wills and trusts to ensure aligned inheritance plans
How do you write a Postnuptial Agreement?
- Asset Inventory: Create detailed lists of all property, investments, retirement accounts, and debts for both spouses
- Financial Documents: Gather tax returns, bank statements, property deeds, business ownership records, and inheritance details
- Goals Discussion: Document each spouse's objectives, concerns, and expectations for the agreement
- Full Disclosure: Both parties must provide complete financial information to ensure enforceability
- Independent Review: Each spouse needs time to review terms separately before signing
- State Requirements: Check local laws for specific formatting, witnessing, and notarization rules
What should be included in a Postnuptial Agreement?
- Identification: Full legal names, addresses, and marriage date of both spouses
- Property Schedule: Detailed listing of separate and marital assets, including current values
- Financial Obligations: Clear terms for debt responsibility and future asset division
- Spousal Support: Specific terms about alimony or maintenance payments if marriage ends
- Disclosure Statement: Confirmation that both parties provided complete financial information
- Voluntary Execution: Statement that agreement was signed without coercion
- Governing Law: Specific state laws that will govern the agreement's interpretation
- Signatures: Dated signatures of both spouses, witnesses, and notary acknowledgment
What's the difference between a Postnuptial Agreement and an Asset Purchase Agreement?
The main document often confused with a Postnuptial Agreement is a Asset Purchase Agreement, especially when business assets are involved in marital property discussions. While both documents deal with asset ownership and transfer, their purposes and legal frameworks differ significantly.
- Timing and Parties: Postnups are created during marriage between spouses, while Asset Purchase Agreements happen between any buyers and sellers in a business context
- Scope of Coverage: Postnups address marital rights, property division, and support obligations. Asset Purchase Agreements focus solely on business asset transfers and related terms
- Legal Requirements: Postnups must meet strict fairness standards and spousal protections under family law. Asset Purchase Agreements follow commercial law with different due diligence requirements
- Duration: Postnups remain active throughout the marriage until divorce or death. Asset Purchase Agreements typically conclude once the transaction is complete
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