There are several reasons why parents who choose to stay at home with their children can benefit from drafting a postnuptial agreement.
After couples in Texas get married and start a family, one parent may decide to stay home with the children instead of remaining in the workforce. While this arrangement may seem manageable and comfortable, couples should be wary about protecting their best financial agreements and create a postnuptial agreement. According to Today, postnuptial agreements are similar to prenuptial agreements in that they detail what each party’s property rights and expectations are upon divorce, but are signed after marriage.
Reasons to draft a postnuptial agreement
There are three primary reasons why it is important for stay-at-home parents to have a postnuptial agreement. First, states Today, one of these agreements can establish the foundation of a happy marriage. When devising a postnuptial agreement, married couples are given the opportunity to discuss their finances in depth and potentially prevent serious disagreements later on.
Secondly, a parent’s child-rearing years are often his or her highest-earning years. This binding documentation ensures that parents who choose to stay home and tend to their children instead of working are compensated for the opportunities they gave up if their marriage ends in divorce.
Lastly, a postnuptial agreement ensures that parents are able to be compensated for more than just the paychecks they missed when they were at home raising their children. For example, if a mother re-enters the workforce after staying home with her children for 10 years, not only is she unlikely to earn as much as she did before she left her job, but her skills may have become obsolete and she may not have as many networking opportunities as before.
Asking for the agreement
While drafting a postnuptial agreement can be beneficial for many stay-at-home parents, some may be hesitant to do so out of fear of offending their partner. To make this conversation as easy as possible, Entrepreneur states that parents requesting one of these agreements should:
- Be open and honest about what they want
- Refrain from presenting their partner with a pre-drafted agreement
- Listen to their partner’s concerns with an open mind
Additionally, couples should leave room for change in their postnuptial agreement over time. For example, this agreement should account for what will happen if one partner starts his or her own business or if a husband or wife becomes involved in his or her spouse’s existing company.
Couples in Texas should take certain steps to ensure that their postnuptial agreement is legally binding and will hold up in a court of law in case they ever decide to divorce. If you and your partner are contemplating creating a postnuptial agreement, speak with an attorney in your area to begin the drafting process.