Most of us have heard of prenuptial agreements - but what about a "post-nup?" That's right, a growing number of experts say that potential property division issues can be avoided entirely through the implementation of a postnuptial agreement. Even though these documents are not as air-tight as a prenup, they offer a significant amount of legal guidance and protection, especially for parents who find themselves staying at home with the kids.
Stay-at-home parents often sacrifice their prime earning years to raise their children. Staying home with the kids may actually be a good financial move for a family, but what happens when the marriage experiences difficulty and dissolves? With an estimated one out of every two Pennsylvania marriages ending in divorce, this possibility should be considered by every stay-at-home parent. The fact remains that stay-at-home moms and dads are less likely to be prepared to reenter the workforce, and many end up near the poverty line because they have been unemployed for so long.
Enter the postnuptial agreement. When one of you decides to stay home with the kids, a postnup should top your "to do" list. This document provides legal guidance for the complex property division in the event of a divorce, but it can also actually strengthen your marriage. Talking about these important financial protections can help you feel more confident about choosing to leave the job market to stay home with the kids.
It is critical to remember that stay-at-home parents need extra protection during divorce because child-rearing years can be the highest-earning years. Postnuptial agreements can help protect men and women who have suffered by being out of the workplace for a decade or more. Qualified professional attorneys can help you learn more about your postnuptial options for equitable division of property.
Source: CNBC, "Why stay-at-home moms need a 'postnup'" Jeff Landers, Dec. 21, 2013