Postnuptial Agreement

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DEFINITION of 'Postnuptial Agreement'

A contract created by spouses after entering into marriage that outlines the ownership of financial assets in the event of a divorce. The contract can also set out the responsibilities surrounding any children or other obligations for the duration of the marriage.

Also known as a "post-marital agreement" or "postnup".

INVESTOPEDIA EXPLAINS 'Postnuptial Agreement'

Similar to a prenuptial agreement, postnuptial agreements allow a couple to alleviate tension caused by financial concerns. Entering into this style of contract will allow spouses to establish an equitable distribution of assets if the marriage dissolves.

Marital agreements, including postnuptial ones, are often considered taboo. Critics argue such contracts indicate the couple expects the marriage to fail. However, if a contract can remedy financial discomfort, the couple could choose to enter into an agreement in hopes of keeping marital harmony.

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