The costliest thing you may ever do is get married. Especially if you get married more than once.
Over 50% of all marriages end in divorce.
About 41% of first marriages end in divorce and over 60% of all second marriages end in divorce.
The average marriage that ends in divorce lasts 8 years. In fact, one of the leading indicators of divorce is money problems.
If you and your spouse start a marriage mutually broke and bereft of assets, then the marriage has an over 70% chance of ending in divorce.
Consider that if you have an annual income of at least $50,000 or more, your chances of divorce lowers by 30%.
This is not to say that the cause of every divorce is related to money.
However, the main cause of most life stressors is having too much or too little money.
Many couples are wary of getting a prenuptial agreement because they think it’s a subconscious admission of an ill-advised marriage that is soon for divorce.
However, a great way to financially secure a marriage against the uncertainties of the future is a postnuptial agreement.
A postnuptial agreement is basically a prenuptial agreement that is formalized after the marriage.
It’s a list of conditions and rules for the marriage and for the division of finances, assets, and property in case of divorce.
Many couples are getting postnuptial agreements to avoid the awkwardness of discussing securing their marriage against divorce.
However, postnuptial agreements are not always legally valid.
The best way to argue the case for getting a postnuptial agreement is to touch on the usefulness of prenuptial agreements – even though many people are wary of them.
Like Justin Bieber.
The Biebers’ Lack of a Prenuptial Agreement
Justin Bieber is a 26-year old Canadian pop superstar who has been famous since he was a preteen.
Bieber has sold over 100+ albums globally.
In September 2018, Bieber married 23-year old model and TV personality Hailey Rhode Bieber.
Without a prenuptial agreement.
The couple may possibly be working towards getting a postnuptial agreement, which would be very wise.
Consider that Bieber is worth an estimated $265 million while Hailey is worth just under $3 million.
This is not to suggest that there were ulterior motives for either person going into the marriage.
The problem is that:
- Both are very young
- Bieber is a global superstar while Hailey is a minor celebrity
- Bieber brings a vast wealth disparity into the marriage
- Young people are less mature and emotionally reasonable than older people when it comes to stress
Hopefully, the Biebers will enjoy a long marriage.
However, like many celebrity marriages before them, it could also end in a lot of financial pain.
Bieber can just ask Michael Jordan.
In 2002, Michael and Juanita Jordan ended their 17-year old marriage in divorce.
The couple did not have a prenuptial agreement.
Juanita Jordan was awarded over $168 million and a 7-bedroom mansion in the divorce settlement.
Benefits of a Postnuptial Agreement
Any divorce lawyer can draw up a postnuptial agreement for you.
Many couples find it easier to discuss a postnuptial agreement after the marriage instead of before it.
The truth is that there is nothing wrong or seedy about discussing the future financial security of a marriage.
With a postnuptial agreement, you are your spouse will make lists, conditions, and rules about the marriage, conduct, and expectations in the event of divorce.
It’s basically a prenuptial agreement that is amicably and mutually agreed upon after the fact.
An ill-advised, troubled, or failed marriage ending in divorce can be financially costly and emotionally traumatic for everyone involved.
The average cost of a divorce lawyer can be as high as $250. Each spouse, or soon to become ex-spouses, can end up paying over $15,000 each to finalize a divorce.
And that is before the traumatic financial sacrifices that will be sustained when appreciable assets, properties and finances become legally divided.
A postnuptial agreement can be financially securing because it requires both spouses to be honest about what can go wrong. And, protect against it.
However, depending on your personal finances, a postnuptial agreement may not be legally enforceable.
Drawbacks of a Postnuptial Agreement
A postnuptial agreement must be contractually written and not just orally agreed upon.
Each spouse must enter in a postnuptial agreement of their own free will. Any indication of coercion of any kind can legally invalidate a postnuptial agreement.
A postnuptial agreement must demonstrate that both spouses have fairly considered the needs of the other in the event of divorce.
Any agreements on potential asset divisions in case of divorce cannot be massively one-sided, disproportional, or unfair.
It goes without saying that a postnuptial agreement should be notarized and professionally prepared by a lawyer. A postnuptial agreement prepared privately between two spouses is not legally enforceable or worth the paper it’s printed on.
Also, you must consider the state you live in before considering a postnuptial agreement. In a community property state, a postnuptial agreement is essentially worthless and unenforceable.
Always Get Legal Help
A postnuptial agreement is a good sign that both spouses are serious about protecting their financial futures.
After all, no one gets life insurance to gleefully anticipate the end of life. It’s a financial protection for loved ones by the policy holder in case of death.
Still, always get a lawyer to draw up the paperwork. Otherwise, a postnuptial agreement may be virtually worthless.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.